Asia Markets See Mixed Day Amid Powell’s Valuation Concerns and Alibaba’s AI Push

Asia-Pacific markets experienced a mixed trading session on Wednesday as investors digested comments from U.S. Federal Reserve Chair Jerome Powell, who suggested that “equity prices are fairly highly valued.” Powell also indicated an unclear path for interest rate cuts, describing the current situation for the central bank as “challenging.”

Australia’s ASX/S&P 200 closed down 0.61%, with Japan’s benchmark Nikkei 225 slipping 0.33% and the Topix losing 0.35%. In South Korea, the Kospi fell 0.11%, and the small-cap Kosdaq traded 0.39% lower. However, South Korean defense stocks defied the broader weakness, with major players like Hanwha Aerospace, Korea Aerospace, and Hyundai Rotem posting gains of 2% to 4%. This rally follows President Donald Trump’s recent statements affirming U.S. support for Ukraine in its conflict with Russia and commitment to supplying weapons to NATO, an alliance for which South Korea has emerged as a significant military equipment supplier.

Meanwhile, Hong Kong’s Hang Seng Index and mainland China’s CSI 300 remained largely flat. The region is currently bracing for Super Typhoon Ragasa, which is bringing hurricane-force winds and severe conditions, including heavy squally showers and thunderstorms, to Hong Kong’s high grounds and southern areas, as noted by the Hong Kong Observatory.

Shares of Alibaba listed in Hong Kong surged over 6% after CEO Eddie Wu announced on Wednesday the company’s plans to significantly boost its investment in artificial intelligence. Wu confirmed at the annual Apsara Conference in Hangzhou that Alibaba is proceeding with its 380 billion yuan ($53 billion) investment in AI infrastructure and intends to further increase this commitment. The company also unveiled its latest and largest AI language model, Qwen3-Max.

In central banking news, the Reserve Bank of New Zealand announced on Tuesday the appointment of Anna Breman as its new governor, marking the first time a woman will hold the role. She is set to commence her five-year term on December 1, succeeding Christian Hawkesby, who served as acting governor since March following Adrian Orr’s unexpected departure. Hawkesby’s interim six-month appointment is scheduled to conclude in October.

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