Asian stock markets were mixed on Wednesday as investors balanced optimism over Indonesia’s new trade agreement with the US against concerns about rising US inflation, which has led to reduced expectations of interest rate cuts by the Federal Reserve.Japan’s Nikei traded at 39,909, up 230 points or 0.58%. Hong Kong’s HSI also surged 68 points or 0.28%, reaching 24,658. This rally was led by tech firms, after US chip giant Nvidia announced it would resume exports to China following Washington’s decision to lift licensing restrictions.Shanghai traded in red, shredding 4 points or 0.13%, reaching 3500. South Korea’s Kospi also slumped 23 points or 0.73%, reaching 3,191 at 10:20 AM IST. The dollar climbed to its strongest level against the yen since early April, supported by a jump in US Treasury yields to their highest in over a month. The move came after Tuesday’s data showed US consumer prices rose by 0.3% in June, matching forecasts but marking the biggest monthly gain since January. Economists pointed to rising prices for goods like coffee and home furnishings as evidence of the inflationary effect of the Trump administration’s expanding tariffs. The Federal Reserve has held interest rates steady in recent months as it waits to assess the full impact of tariffs on inflation. Chair Jerome Powell had earlier said he expected the effect of the tariffs to become more visible during the summer. Meanwhile, tech stocks continued to show resilience. Shares of AI leader Nvidia surged 4% overnight, helping lift sentiment in the sector. Oil prices remained under pressure, with Brent crude steady at around $69 per barrel.