Asian Shares Decline Ahead Of US Inflation Data; Nikkei Outperforms

(RTTNews) - Asian stocks ended mostly lower on Wednesday as investors looked ahead to the release of U.S. inflation data as well as inflation and trade figures from China this week for additional clues on the economic outlook and early interest rate cuts.

Traders also awaited fourth-quarter earnings from large U.S. banks for directional cues.

The dollar held steady in cautious trading ahead of the release of U.S. CPI and PPI data while bitcoin rebounded after a plunge triggered by the U.S. Securities and Exchange Commission's statement that it hadn't yet granted approval of spot-Bitcoin exchange traded funds.

Oil steadied after climbing over 2 percent Tuesday on signs of falling U.S. stockpiles.

China's Shanghai Composite index dropped 0.54 percent to 2,877.70, hovering around multi-year lows in the absence of major catalysts and uncertainty surrounding the upcoming Taiwan election.

Hong Kong's Hang Seng index ended down 0.57 percent at 16,097.28 - extending losses for a seventh consecutive session.

Japanese markets bucked the weak regional trend to end sharply higher as recent data showing declines in Japanese inflation and wage growth bolstered bets on a dovish BOJ.

The Nikkei average jumped 2.01 percent to 34,441.72, touching its highest level in 34 years led by exporters and technology stocks.

The broader Topix index settled 1.30 percent higher at 2,444.48, its highest since March 1990.

Uniqlo-brand clothing retail chain operator Fast Retailing soared 3.9 ahead of its first-quarter results due on Thursday.

The yen extended declines as data showed wage growth for Japanese workers slowed sharply in November.

Seoul stocks fell notably ahead of the Bank of Korea's rate decision on Thursday, with no changes in rates expected. The Kospi average slipped 0.75 percent to 2,541.98 - extending losses for the sixth consecutive session.

Market bellwether Samsung Electronics declined 1.5 percent and No. 2 chipmaker SK Hynix lost 2.8 percent. Battery maker LG Energy Solution shed 1.7 percent and its smaller rival Samsung SDI tumbled 3.6 percent.

Australian markets ended lower, dragged down by miners as iron ore futures extended losses for the fifth straight session.

Earlier today, data showed annual inflation sank to a near two-year low of 4.3 percent in November, easing pressure on RBA to hike rates at its February meeting.

The benchmark S&P ASX 200 fell 0.69 percent to 7,468.50 while the broader All Ordinaries index ended down 0.60 percent at 7,702.70.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index settled 0.63 percent lower at 11,769.40.

U.S. stocks ended mostly lower overnight while bond yields rose as investors awaited cues from inflation data and the start of fourth-quarter earnings season.

While the tech-heavy Nasdaq Composite finished marginally higher, the Dow gave up 0.4 percent and the S&P 500 eased 0.2 percent.