(fxcue news) - Asian stocks ended mostly higher on Wednesday, with Japanese markets underperforming as the yen continued to strengthen on BoJ rate hike bets and data showed Japan's export growth continued to decelerate for the second consecutive month. The dollar dipped as investors fretted about the U.S. fiscal and economic outlook. Oil prices jumped over 1 percent after reports emerged that Israel is preparing a strike on Iranian nuclear facilities, a development that might disrupt oil supplies. Gold rallied to a 1 1/2-week high near $3,320 per ounce amid U.S. fiscal uncertainty as President Donald Trump's sweeping tax bill inches through Congress. Chinese shares eked out modest gains as Morgan Stanley raised its China GDP forecast to 4.5 percent for 2025, citing easing trade tensions. The benchmark Shanghai Composite index edged up by 0.21 percent to 3,387.51 while Hong Kong's Hang Seng index added 0.62 percent to close at 23,827.78. Japanese markets ended lower as a strengthening yen sapped demand for exporters. Soft trade data, escalating geopolitical tensions and tariff-related uncertainty also prompted traders to lock in recent gains. The Nikkei average fell 0.61 percent to 37,298.98 while the broader Topix index settled 0.22 percent lower at 2,732.88. Tokio Marine Holdings tumbled 2.6 percent after a bleak profit forecast. Mizuho Financial Group surged 2.7 percent after announcing its decision to offload cross-shareholdings. Seoul stocks rose sharply after two days of losses. The Kospi average jumped 0.91 percent to 2,625.58, with bio and heavy industry shares pacing the gainers. Leading bio firm Samsung Biologics soared 7.1 percent and top defense equipment manufacturer Hanwha Aerospace surged 4.3 percent. Banks led Australian markets higher, a day after the Reserve Bank of Australia delivered its widely expected rate cut. The benchmark S&P/ASX 200 rose 0.52 percent to 8,386.80, reaching its highest level in more than three months. The broader All Ordinaries index closed up 0.45 percent at 8,611.70. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index gained 0.47 percent to end at 12,703.10. U.S. stocks fell slightly overnight as investors dumped tech stocks after recent strong gains. The Dow dipped 0.3 percent to snap three consecutive sessions of gains under pressure from rising Treasury yields as President Trump increased the pressure on House Republicans to pass his sweeping bill to extend trillions of dollars of tax cuts and slash government spending. The tech-heavy Nasdaq Composite shed 0.4 percent after a two-session winning streak and the S&P 500 dropped 0.4 percent to snap a six-day rally.