CANBERA (dpa-AFX) - Asian stocks are trading mixed on Wednesday after two days of strong gains. Underlying sentiment turned cautious somewhat after upbeat U.S. retail sales data put a Fed rate hike back on the agenda and the International Monetary Fund warned that China's credit growth is on a 'dangerous trajectory'.
Also, U.S. President Donald Trump is under fire for his late response to white nationalist violence over the weekend. A number of business leaders have quit his economic council in response.
Gold prices firmed up and the dollar slid slightly as investors awaited the minutes from the Federal Reserve's July meeting for clues regarding the future pace of interest rate hikes. Oil prices edged up on data showing a fall in U.S. crude inventories.
China's Shanghai Composite index was down 0.4 percent after the IMF revised upward its growth forecast for China, but warned the country's debt is on dangerous trajectory. Hong Kong's Hang Seng index was rising 0.4 percent.
Japan's Nikkei index was little changed, as automakers retreated amid NAFTA renegotiations, offsetting gains in energy and technology stocks.
Australian shares were modestly lower after mixed earnings updates from the likes of CSL and Origin Energy. CSL shares tumbled 3.7 percent while Origin Energy rallied 4.5 percent. The benchmark S&P/ASX 200 slid 0.16 percent.
South Korea's Kospi average was up half a percent as traders returned to their desks after a public holiday on Tuesday.
Overnight, U.S. stocks ended narrowly mixed to halt a two-day advance as a slew of earnings reports disappointed investors.
European markets eked out modest gains on Tuesday as the rhetoric between the U.S. and North Korea softened and the latest GDP data underlined the continued strength of the German economy.
Copyright RTT News/dpa-AFX