Il Nuovo Postiglione - Asian markets waver as Japan exports show tariff strain

Traders have also been watching the recent diplomatic whirlwind to resolve the protracted war in Ukraine after President Donald Trump's high-stakes meeting with Russian counterpart Vladimir Putin in Alaska.

Eyes are now on potential face-to-face talks between Putin and Ukrainian President Volodymyr Zelensky, who has said he is ready for such a meeting.

Tokyo dropped sharply on Wednesday, closing the day down 1.5 percent. South Korea and Taipei also finished down.

Hong Kong recovered from a morning dip to advance during afternoon trading. Shanghai, Sydney, Jakarta and Bangkok also rose. Manila was flat.

Hong Kong's stock exchange operator posted record half-year revenue on Wednesday, riding a renewed surge in public listings and trading activity at the Chinese finance hub.

Tuesday on Wall Street saw several major technology firms lose significant market share, including Nvidia, Palantir and Oracle.

The selloffs come amid increasing unease over a prolonged rally in tech stocks this year despite a range of uncertainties facing the global economy.

Among the challenges are biting tariffs unleashed by Trump on major US trading partners this year.

Official data showed Wednesday that Japanese exports suffered their steepest drop in more than four years last month.

Hours later, statistics authorities in Britain revealed that inflation in the country reached its highest level in July since the start of last year, a sign of further pressure on the economy.

The higher-than-expected reading "came largely as a result of yet another chunky rise in food prices, but also by virtue of an upward impulse from consumer energy costs", wrote Michael Brown, senior research strategist at Pepperstone.

London and Paris were down in early trade, while Frankfurt saw a modest gain.

Investors are eagerly awaiting a speech on Friday by US Federal Reserve Chair Jerome Powell at the annual retreat of global central bankers in Jackson Hole, Wyoming.

Traders hope Powell will provide more clues about a widely expected interest rate cut at the Fed's next policy meeting in September, after data last week provided a mixed picture about inflation in the United States.

"Powell's Wyoming speech is being framed as a high-wire act," wrote Stephen Innes of SPI Asset Management in a note.

"Too dovish, and he risks stoking long-end inflation fears; too stern, and he risks yanking the oxygen mask off equities already trading in rarified air."

- Key figures at around 0715 GMT -

Tokyo - Nikkei 225: DOWN 1.5 percent at 42,888.55 (close)

Hong Kong - Hang Seng Index: UP 0.3 percent at 25,200.07

Shanghai - Composite: UP 1.0 percent at 3,766.21 (close)

London - FTSE 100: DOWN 0.1 percent at 9,183.54

Euro/dollar: DOWN at $1.1640 from $1.1646 on Tuesday

Pound/dollar: UP at $1.3492 from $1.3489

Dollar/yen: DOWN at 147.39 yen from 147.64 yen

Euro/pound: DOWN at 86.27 pence from 86.33 pence

West Texas Intermediate: UP 0.7 percent at $62.80 per barrel

Brent North Sea Crude: UP 0.8 percent at $66.29 per barrel

New York - Dow: FLAT at 44,922.27 (close)

E.Spicuzza--INP