BEIJING (dpa-AFX) - Asian stocks ended mostly lower on Wednesday, even as pressure on tech stocks eased and dovish Fed remarks spurred expectations that the U.S. Federal Reserve may not need to raise interest rates aggressively next year.
The U.S. dollar retreated from an 18-month high while gold dipped below $4,150 an ounce, extending losses for the third straight session ahead of U.S. CPI data later in the day, which could influence the Fed's rate trajectory.
Brent crude prices held firm above $106 a barrel, recouping losses from the previous session amid escalating hostilities between Saudi Arabia and Iran-backed Houthi rebels.
Saudi Aramco's Dhahran headquarters was hit during a Houthi missile attack on Tuesday, stoking fresh uncertainty over a recovery in energy shipments from the Persian Gulf.
Tehran has intensified attacks on ships sailing through the Strait of Hormuz, although the U.S. Central Command said it had helped facilitate the passage of more than 19 million barrels of crude though the strategic waterway on Monday.
Chinese shares ended lower as mixed inflation data heightened concerns over domestic demand. The benchmark Shanghai Composite index fell 0.88 percent to 3,767.23 as sentiment towards companies linked to the artificial intelligence supply chain continued to deteriorate. Hong Kong's Hang Seng index finished 0.13 percent lower at 24,314.17.
China's consumer price inflation rose slightly in September, driven by higher fuel prices while producer price inflation hit the highest level in more than four years, official data revealed earlier today.
Consumer prices rose 0.9 percent in September from a year ago, slightly faster than the 0.8 percent increase seen in August.
Producer price inflation accelerated to 5.0 percent from 3.8 percent in August, hitting the highest since June 2022.
Separate set of data revealed that China's exports and imports surged past expectations in September.
Exports grew by 36.3 percent year-on-year in the month, marking the fastest pace since February on the back of rising global demand for AI-related goods. Imports surged 31 percent, the fastest increase since June.
Japanese markets ended on a flat note as cooling producer price inflation signaled macroeconomic stability. The yen strengthened after reports suggested that Bank of Japan officials are eyeing the possibility of another interest-rate increase as soon as December.
The Nikkei finished marginally lower at 67,744.29, surrendering early gains and extending losses for a fifth straight session. The broader Topix index settled 0.34 percent lower at 4,096.78 due to losses in banking shares.
Seoul stocks fell in choppy trade, extending losses for the sixth straight session. The Kospi index dropped 0.44 percent to 6,008.81 as foreign investors extended their selling streak for a seventh consecutive session amid rising geopolitical risks and AI spending worries.
Australian markets fell notably, with banks declining after the release of hawkish RBA minutes. The benchmark S&P/ASX 200 dropped 0.64 percent to 8,727.90 while the broader All Ordinaries index closed 0.59 percent lower at 8,869.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended marginally higher at 13,760.39, erasing early losses.
Overnight, U.S. stocks fluctuated before ending modestly lower as mixed earnings news from financial giants Wells Fargo, JPMorgan Chase and Goldman Sachs failed to quell broader concerns about inflation and potential Fed rate hikes.
A deepening global semiconductor sell-off on concerns over high artificial intelligence spending, rising financing costs and Chinese competition also added to pressure.
The Dow dipped 0.4 percent, the tech-heavy Nasdaq Composite slipped 0.2 percent and the S&P 500 edged down marginally.
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