06:37 AM EDT, 05/21/2025 (MT Newswires) -- Asian stock markets were choppy Wednesday, as investors considered rising interest rates in Japan and possibly an improving outlook for the Chinese economy.

Hong Kong and Shanghai finished green, while Tokyo lagged. Other regional exchanges were mixed on the high side.

In Japan, the Nikkei 225 opened lower on Wall Street cues and could not recover, finishing down 0.6% as traders weighed rising interest rates and a stronger yen.

The benchmark Nikkei 225 fell 230.51 to 37,298.98, although gainers outnumbered losers 121 to 102.

Leading the upside was heavy equipment maker IHI, up 5.4%, while insurer Sompo Holdings lost 7.1%.

In Hong Kong, the Hang Seng Index opened higher and held ground, finishing up 0.6% on growing sentiments that the Chinese economy will be resilient in the face of rising tariffs on exports.

The broad gauge Hang Seng rose 146.30 to 23,827.78, as gaining issues outnumbered losers 54 to 25. The Hang Seng TECH Index gained 0.5% on the day, while the Mainland Properties Index rose 0.4%.

Leading the upside was Zijin Mining, gaining 7.9%, while Sands China declined 2.2%.

On the mainland, the Shanghai Composite rose 0.2% to 3,387.57.

On the other regional exchanges, the S. Korean KOSPI rose 0.9%; the Taiwan TWSE advanced 1.3%; the Australian ASX 200 gained 0.5%; the Singapore Straits Times Index was steady, and the Thai Set declined 0.8%. In late trading in Mumbai, the Sensex was up 0.5%.

In other news, at the conclusion of its two-day policy session, Bank Indonesia cut its policy interest rate by 0.25% to 5.50%, notching the first rate cut since January. The central bank cited muted inflation and a stable national currency in FX markets for the decision to cut rates.