Asian equities closed lower on Wednesday as investor caution took hold following mixed signals from the U.S. Federal Reserve. Key indices such as Nikkei 225, Kospi, and Nifty 50 came under pressure amid concerns over global growth and interest rate policy.

In Tokyo, the Nikkei 225 fell around 0.5%, weighed down by weak manufacturing data and subdued exports. South Korea’s Kospi declined roughly 1.1% as exports weakened and global tech demand cooled. Meanwhile, India’s Nifty 50 also slipped, underperforming many regional peers despite earlier strength this session.

Markets in the broader Asia-Pacific region were mostly negative. The MSCI Asia-Pacific index excluding Japan dipped 0.4%, reflecting systemic pressure across major markets. In Australia, the ASX 200 led losses, down around 1.0%, after consumer inflation data came in hotter than expected.

U.S. Fed Chair Jerome Powell’s remarks that stock valuations were “fairly highly valued” added to uncertainty, as did the lack of clear guidance on the timing of future rate cuts.  Slower-than-expected PMI data from the U.S. also fueled worries about a softening growth trajectory.

Commodity markets showed mixed reactions. Brent crude rose modestly (~0.4%) as supply concerns emerged from stalled production in some regions. Gold softened slightly after recent highs.

Looking ahead, investors will focus on incoming inflation prints, central bank commentary, and how regional economies absorb external shocks. The path for Asian equities now depends heavily on global monetary policy direction and domestic resilience in China, India, and Korea.