Asian financial markets maintained narrow ranges on Wednesday as traders monitored developments in U.S.-China trade discussions and absorbed mixed signals from global economic indicators. The U.S. dollar strengthened against major currencies despite a modest pullback in Wall Street indices the previous day.
The MSCI Asia-Pacific index excluding Japan showed minimal movement, with Australian shares rising 0.2% and Japan's Nikkei 225 declining 0.5%. Earlier, U.S. equity futures declined after General Electric's stock drop offset positive retail earnings reports, with the S&P 500 hovering near a key resistance level following its recent five-month high.
U.S. non-manufacturing sector activity reached a 14-year high in February, according to the Institute for Supply Management, marking the strongest performance since August 2005. This data bolstered the dollar amid ongoing trade negotiations between Washington and Beijing.
Chinese economic planners announced a 2019 growth target of 6.0-6.5%, slightly below the 6.6% achieved in 2018. U.S. Secretary of State Mike Pompeo signaled optimism about concluding the trade war, stating officials were 'on the cusp' of a deal but emphasizing the need for a 'right' agreement.
The U.S. dollar maintained gains against the yen, trading at 111.83 after reaching a 12-day high of 112.135. The euro remained stable at $1.1306, while U.S. crude oil futures fell 0.7% to $56.16 per barrel amid unexpected inventory increases reported by the American Petroleum Institute.
