Asian Shares Mixed After Hawkish Fed Pause

(RTTNews) - Asian stocks ended mixed on Thursday as new Chinese data disappointed and the U.S. Federal Reserve signaled that more rate hikes are on the cards. Investors also awaited cues from the ECB and BOJ meetings.

Treasury yields rebounded and the U.S. dollar rallied following fresh hawkish rhetoric from the U.S. central bank.

Gold edged lower while oil clawed back some losses after the previous day's plunge. Chinese shares rose notably after China's central bank cut a key interest rate and pumped billions into financial markets in a bid to support slowing growth.

The benchmark Shanghai Composite index climbed 0.74 percent to 3,252.98 as expectations of more stimulus outweighed disappointing economic readings. Hong Kong's Hang Seng index jumped 2.17 percent to 19,828.92.

China's economic recovery faltered in May as industrial production and retail sales figures missed forecasts. Growth of new home prices softened and real estate tumbled in the first five months of the year, adding to expectations that policymakers will unveil more stimulus.

Japanese shares gave up earlier gains to end on a flat note after a pause and hawkish outlook from the U.S. Fed. Encouraging economic data helped limit overall losses to some extent.

Japan's core machinery orders rebounded in April while the trade deficit in May shrank 42.0 percent from a year earlier to 1.37 trillion yen ($9.8 billion), separate reports showed.

The Nikkei average settled marginally lower at 33,485.49 after a four-day winning run. The broader Topix index also finished marginally lower at 2,293.97.

Drug makers were among the worst hit, with Eisai and Daiichi Sankyo losing 5.9 percent and 4 percent, respectively.

Seoul stocks ended lower, with the Kospi average falling 0.40 percent to 2,608.54 - extending losses for a second straight session.

Australian markets rose slightly, and the Aussie dollar hit a four-month high after data showed strong jobs growth last month, bolstering the case for the Reserve Bank to raise interest rates in July.

The benchmark S&P/ASX200 edged up 0.19 percent to 7,175.30, extending gains for a fourth consecutive session. The broader All Ordinaries index ended 0.21 percent higher at 7,370, led by banking and technology stocks.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index fluctuated before ending marginally higher at 11,687.45.

Data showed earlier in the day that New Zealand's economy has slipped into a recession in the first quarter, following an aggressive run of policy tightening.

U.S. stocks ended mixed overnight after the Federal Reserve held interest rates steady, as widely expected, but signaled that borrowing costs will likely rise by another half of a percentage point by the end of this year.

The tech-heavy Nasdaq Composite gained 0.4 percent and the S&P 500 finished marginally higher while the Dow shed 0.7 percent from a four-month closing high reached the previous day.