BANGKOK – Shares in Asia traded mixed on Wednesday after an update on inflation pulled most U.S. stocks lower, though gains for Nvidia pushed the Nasdaq to another record.

Tokyo’s Nikkei 225 gained 0.6% to 39,895.84 as the U.S. dollar rose against the Japanese yen, trading near 149 yen. Investors are focused on the potential impact of an election for the Upper House of Parliament on Sunday that is expected to lead to tax cuts and higher spending as lawmakers try to restore the waning popularity of the ruling Liberal Democrats.

Worries over a deterioration in Japan’s fiscal health have pushed yields of long-term Japanese government bonds to their highest levels in years.

“What’s at stake isn’t simply which party hands out the biggest bundle of goodies. It’s whether the walls holding up Japan’s house of debt can withstand another round of fiscal fireworks…” Stephen Innes of SPI Asset Management said in a commentary.

Elsewhere in Asia, Hong Kong’s Hang Seng added 0.3% to 24,658.55 while the Shanghai Composite index slipped 0.1% to 3,500.62.

South Korea’s Kospi lost 0.7% to 3,192.97 and in Australia, the S&P/ASX 200 declined 0.8% to 8,558.10.

Taiwan’s Taiex jumped 0.8% and India’s Sensex gave up 0.1%. Thailand’s SET was little changed.

In Jakarta, shares rose 0.7% after President Donald Trump said on Truth Social that he plans to tariff imports from Indonesia at 19%, while American goods sent to the Southeast Asian country will face no tariffs. Trump also said Indonesia committed to buying U.S. energy, agricultural products and aircraft.

On Tuesday, the S&P 500 fell 0.4% to 6,243.76, but stayed near its all-time high set last week, as 90% of the stocks within the index fell. The Dow Jones Industrial Average dropped 1% to 44,023.29.

The Nasdaq composite rose 0.2% to a record 20,677.80 thanks to Nvidia, the market’s most influential stock.

Nvidia said the U.S. government has assured it that licenses will be granted for its H20 chip, used for artificial intelligence, again and that deliveries will hopefully begin soon. Its 4% gain was by far the strongest force pushing upward on the S&P 500.

Stocks of big U.S. banks were mixed following their latest profit reports. JPMorgan Chase slipped 0.7% despite reporting a stronger profit than analysts expected, as CEO Jamie Dimon warned of risks to the economy because of tariffs and other concerns.

Citigroup rose 3.7% following its better-than-expected profit report. But Wells Fargo fell 5.5% following its own, as it trimmed its forecast for an important way that it makes money.

A report showed inflation in the United States accelerated to 2.7% last month from 2.4% in May as prices rose for clothes, toys and other goods that usually are imported. Economists say prices may be rising because of stiff tariffs that President Donald Trump has proposed on other countries.

Treasury yields yo-yoed after the report and then began rising.

The yield on the 10-year Treasury climbed to 4.48% from 4.43% late Monday. The yield on the two-year Treasury, which more closely tracks expectations for what the Federal Reserve will do with short-term interest rates, rose to 3.95% from 3.90%.

Higher inflation could inhibit interest rate cuts by the Fed. It has been keeping rates on hold this year after cutting them at the end of last year. That’s because lower rates can give inflation more fuel, along with a boost for the economy. Wall Street loves lower rates because they goose prices higher for stocks and other investments, and Trump himself has been clamoring for the Fed to cut more quickly.

Fed Chair Jerome Powell, though, has been adamant that he wants to wait for more data about how tariffs affect the economy and inflation. Following Tuesday’s inflation report, traders are still overwhelmingly betting that the Fed will cut its main interest rate by the end of the year. But they pulled back their bets on the number of potential cuts, according to data from CME Group.

In other dealings early Wednesday, U.S. benchmark crude oil picked up 26 cents to $66.78 per barrel. Brent crude, the international standard, was up 15 cents at $68.86 per barrel.

The dollar rose to 148.94 Japanese yen from 148.87 yen. The euro was at $1.1622, up from $1.1602.

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AP Business Writer Stan Choe contributed.