Asian Shares Mixed Ahead Of Fed Decision

(RTTNews) - Asian stocks ended mixed on Wednesday after overnight data showed U.S. consumer price inflation barely rose in May, reinforcing expectations the Federal Reserve would skip a rate hike later in the day.

Expectations of more rate cuts and policy stimulus from China helped to limit overall losses to some extent.

Chinese shares fluctuated before finishing slightly lower after a World Bank report cautioned that China's economic recovery remains fragile and depended on policy support.

The benchmark Shanghai Composite index slipped 0.14 percent to 3,228.99 while Hong Kong's Hang Seng index finished 0.58 percent lower at 19,408.42.

Japanese shares led regional gains as the yen weakened on expectations that the Bank of Japan will maintain its ultra-loose policy when it meets on Friday.

The Nikkei average jumped 1.47 percent to 33,502.42, marking its highest close since March 1990, in a four-day winning streak. The broader Topix index settled 1.31 percent higher at 2,294.53.

Toyota Motor climbed 6.3 percent to extend Tuesday's rally after announcing a range of advancements in solid-state batteries and other technologies. Peer Honda Motor gained 3.6 percent while SoftBank Group, Kobe Steel, Trend Micro and Sumitomo Metal Mining surged 5-6 percent.

Seoul stocks ended notably lower ahead of the Fed's rate decision. The Kospi average fell 0.72 percent to 2,619.08, with Kakao Corp, LG Energy & Solution and Samsung SDI leading losses.

Export prices in South Korea were down 1.3 percent month-on-month in May after rising 0.4 percent in April, the Bank of Korea said in a report today.

Australian markets eked out modest gains as mining stocks surged on China stimulus hopes.

The benchmark S&P/ASX 200 rose 0.32 percent to 7,161.70 while the broader All Ordinaries index ended 0.34 percent higher at 7,354.20. BHP Billiton, Rio Tinto and Fortescue Metals Group jumped 3-4 percent.

Biopharmaceutical giant CSL plunged 6.9 percent after flagging headwinds from higher exchange rates in fiscal 2023.

Across the Tasman, New Zealand's benchmark S&P/NZX 50 index edged up 0.22 percent to 11,678.62.

The IMF warned in a report that the New Zealand economy had overheated because of the "generous" financial and monetary support and was now going through a necessary slowdown caused by the RBNZ's rate rises to combat inflation.

U.S. stocks rose overnight after data showed the headline consumer price inflation increased by a less-than-estimated 4.0 percent in May on an annual basis, marking the slowest annual rate since March 2021.

The data added to optimism about the Fed pausing its recent interest rate increases at Wednesday's meeting.

The Dow rose 0.4 percent to set a four-month closing high, while the tech-heavy Nasdaq Composite and the S&P 500 gained 0.8 percent and 0.7 percent, respectively to reach their best closing levels in over a year.