CANBERA (dpa-AFX) - Asian stocks ended mixed on Wednesday after several Federal Reserve officials, including Fed Chair Jerome Powell reiterated caution over further policy easing.
China's Shanghai Composite index jumped 0.83 percent to 3,853.64, buoyed by gains in tech stocks amid renewed enthusiasm for artificial intelligence and semiconductors. Hong Kong's Hang Seng index rallied 1.37 percent to 26,518.65.
Japanese markets ended slightly higher as traders returned to their desks after a public holiday.
The Nikkei average closed up 0.30 percent at a record high of 45,630.31, reversing early losses. The broader Topix index edged up by 0.23 percent to 3,170.45.
Industrial manufacturer IHI soared 9.7 percent and tech investor SoftBank Group surged 6 percent while utility Tokyo Electric Power gave up 4.9 percent.
Investors shrugged off data that showed Japanese manufacturing activity shrank more than expected in September to hit a six-month low.
Seoul stocks ended lower due to profit taking following Powell's comments that stock prices are overvalued. The Kospi average slipped 0.40 percent to 3,472.14.
Defence shares bucked the weak trend, with Hanwha Aerospace climbing 5.4 percent on U.S. President Donald Trump's hawkish remarks against Russia.
Australian markets ended sharpy lower after data showed consumer prices rose at the fastest annual pace in a year in August to the top of the Reserve Bank's 2-3 percent target, reducing the likelihood of further policy easing.
The benchmark S&P/ASX 200 fell 0.92 percent to 8,764.50, marking its steepest one-day decline in three weeks. The broader All Ordinaries index closed 0.88 percent lower at 9,057.60.
Financials paced the declines, with the big four banks ending down between 1.4 percent and 3.2 percent.
Across the Tasman, New Zealand's benchmark S&P/NZX 50 index rose 0.34 percent to 13,181.31 following the appointment of Swedish national Anna Breman as the new Governor of the Reserve Bank of New Zealand.
The dollar consolidated in Asian trade after the release of weak U.S. business activity data and ahead of key PCE inflation data due this week.
Gold hit a fresh record high at $3,777 per ounce while oil extended overnight gains after industry data showed a drop in U.S. crude inventories, reinforcing concerns over tightening supplies.
U.S. stocks fell from record highs overnight, snapping a three-day winning streak amid doubts about the sustainability of the artificial intelligence bull trend.
Investors booked profits at higher levels after Fed Chair Jerome Powell signaled a cautious approach to future rate cuts and stated that equity prices are currently 'fairly highly valued' by many measures.
Powell also said the Fed is facing a 'challenging situation' and that there is no risk-free path' to achieve the central bank's dual mandate of maintaining full employment and price stability in the U.S. economy.
Meanwhile, a measure of U.S. business activity slowed for a second straight month in September, fueling concerns about the economic outlook.
The tech-heavy Nasdaq Composite lost 1 percent, the S&P 500 shed 0.6 percent and the Dow eased 0.2 percent.
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