There is about a 40% chance of a U.S. recession this year and a risk of lasting damage to the country’s standing as an investment destination if the administration undermines trust in U.S. governance, according to J.P. Morgan’s chief economist.

The likelihood of a U.S. recession in 2025 has increased to 35%, up from 15% in December, as the economic impact of new tariffs takes hold, Alec Kersman, managing director at Pimco, said at CNBC’s Converge Live event on Wednesday.

Asian stocks were mixed on Wednesday with equities in Australia and Malaysia leading losses amid renewed uncertainty over U.S. President Donald Trump’s trade policies, while South Korean shares jumped tracking a modest rebound in U.S. tech giants.

Oil prices edged up on Wednesday, buoyed by a weaker dollar, but mounting fears of a U.S. economic slowdown and the impact of tariffs on global economic growth capped gains.

The dollar struggled on Wednesday to lift off a five-month low against major peers, as worries about the U.S. economy simmered, in view of President Donald Trump’s unpredictable trade policies.

Japan’s economy experienced slower growth than initially reported in the last quarter of the year, according to revised data from the Cabinet Office.