Most Asian stocks traded in tight ranges on Wednesday, with Japanese shares falling after trade data showed the impact of U.S. tariffs, while Australian shares extended gains on a dovish central bank.

Regional markets were hurt by a weak close on Wall Street overnight, with the S&P 500 losing momentum after six straight sessions of gains. S&P 500 futures fell 0.2% in Asian trading.

Investors remained wary of the U.S. economy after Moody's downgraded its credit rating last week, while a trade deal with Washington remained in focus.

Several Federal Reserve officials have warned that trade tariffs will support inflation and keep interest rates on hold for longer.

Market sentiment was also affected by reports that Israel plans to attack Iran's nuclear facilities, a move that could significantly worsen the geopolitical situation in the Middle East.

Nikkei falls as trade data shows impact of tariffs

Japan's Nikkei 225 fell 0.3%, while the Topix was flat after data showed the country unexpectedly posted a trade deficit in April.

The deficit was mainly caused by a decline in export growth, while imports were more resilient than expected after a sharp wage hike in the spring.

Wednesday’s data highlighted the impact of high U.S. tariffs on Japan’s trade, coming just days before Japan is reportedly set to begin a third round of high-level trade talks with Washington.

But Tokyo has so far shown no willingness to change its stance on demanding the United States suspend all trade tariffs on the country.

Australian shares surge on commodity gains, dovish central bank

Australia's ASX 200 rose 0.8% to a three-month high, extending gains from the previous session.

The ASX was driven higher by energy and gold stocks as oil and gold prices surged on reports that Israel planned to attack Iranian nuclear facilities.

Sentiment in Australia remained buoyant after the Reserve Bank of Australia cut interest rates by 25 basis points on Tuesday and forecast slower inflation and economic growth.

While the Reserve Bank of Australia stopped short of committing to further rate cuts, investors viewed its outlook as largely dovish, which could portend more easing in the near term.

China stocks rise as Beijing criticizes U.S. chip controls

China's CSI 300 and Shanghai Composite rose 0.6% and 0.3% respectively, while Hong Kong's Hang Seng rose 0.7%.

Chinese markets extended gains after the People's Bank of China further cut lending rates this week, easing monetary conditions and providing more support for the economy. The rate cut also shows that Beijing remains committed to supporting growth, which could foreshadow more stimulus.

But concerns about tensions between China and the United States limited stock gains after China's Ministry of Commerce issued a new statement criticizing the United States for restrictions on Chinese computer chips. Beijing has particularly objected to U.S. attempts to ban the use of Huawei chips outside of China.

China recently warned that U.S. chip controls threaten to derail a recent trade truce between the two countries.

Performance in other Asian markets was mixed. South Korea's KOSPI rose 1%, while Singapore's Straits Times Index fell 0.2%.

Gift Nifty 50 futures, the benchmark of India's Nifty 50 index, pointed to a muted open after the index retreated from seven-month highs in the past three sessions.