Asian stock markets presented a mixed performance on Wednesday as investors digested cautious remarks from the Federal Reserve, a lackluster U.S. retail sales report, and heightened geopolitical tensions in Europe and the Middle East.
The U.S. dollar regained some strength following a decline on Tuesday amidst speculations of impending Federal Reserve rate cuts.
In commodities, gold saw a slight uptick during Asian trade, whereas oil prices dipped from a seven-week high after industry data revealed an increase in U.S. crude inventories.
China's Shanghai Composite Index slipped by 0.40% to close at 3,018.05. Conversely, Hong Kong's Hang Seng Index rebounded, surging 2.87% to 18,430.39, following three consecutive days of losses.
Japanese markets posted modest gains. The Bank of Japan's April policy meeting minutes indicated a discussion among policymakers about the impact of a weak yen on prices, with one official emphasizing the necessity of raising interest rates "in a timely and appropriate manner." The Nikkei average increased by 0.23% to 38,570.76, while the broader Topix Index gained 0.47% to settle at 2,728.64.
Mitsubishi Motors led the gainers, rising by 9%. Advantest, a chip-related company, jumped 4.1% after Nvidia surpassed Microsoft to become Wall Street's most valuable company.
In Seoul, the Kospi average rallied, climbing 1.21% to 2,797.33 as optimism around AI technology boosted tech stocks, with heavyweight Samsung Electronics gaining 1.8%.
Australian markets edged downward following comments from several Federal Reserve officials who, on Tuesday, underscored the Fed's data-driven approach to decision-making. The benchmark S&P/ASX 200 slipped by 0.11% to 7,769.70, with industrials and financials underperforming. The broader All Ordinaries Index ended slightly lower at 8,010.50.
In New Zealand, the benchmark S&P/NZX-50 Index fell by 0.82% to 11,671.19 ahead of the release of U.K. May inflation data and the upcoming Bank of England policy decision.
In the U.S., stocks rose overnight as investors processed mixed economic data and comments from various Federal Reserve officials who emphasized the need for more evidence of cooling inflation before considering rate cuts. May's industrial production and manufacturing output exceeded expectations, while retail sales showed minimal growth and April's figures were significantly revised downwards. This led to lower Treasury yields and heightened investor bets on two potential interest-rate hikes this year.
The S&P 500 edged up by 0.3%, the tech-heavy Nasdaq Composite closed marginally higher to reach a new record, while the Dow increased by 0.2%.
