Asian Markets Trade Mixed

(RTTNews) - Asian stock markets are trading mixed on Wednesday, following the broadly negative cues from Wall Street overnight, as traders await key U.S. consumer price inflation readings later in the day that could influence the US Fed's rate trajectory. Signals of a policy shift in China boosted sentiment, while persisting geopolitical tension due to escalating violence in Syria is weighing on market sentiment. Asian markets closed mixed on Tuesday.

While the US Fed is widely expected to lower rates by another 25 basis points next week, the data could impact the outlook for future rate cuts by the central bank.

CME Group's FedWatch Tool is currently indicating an 86.1 percent chance the Fed will lower rates by a quarter point next week but a 69.1 percent chance the central bank will then leave rates unchanged in late January.

Australian shares are trading notably lower on Wednesday, extending the losses in the previous session, with the benchmark S&P/ASX 200 falling well below the 8,400 level, following the broadly negative cues from Wall Street overnight, with weakness across most sectors led by mining and energy stocks amid higher commodity prices. The benchmark S&P/ASX 200 Index is losing 39.90 points or 0.48 percent to 8,353.10, after hitting a low of 8,342.10 earlier. The broader All Ordinaries Index is down 37.80 points or 0.44 percent to 8,612.20. Australian stocks ended notably lower on Tuesday.

Among major miners, BHP Group and Fortescue Metals are edging down 0.1 to 0.5 percent each, while Rio Tinto is losing almost 1 percent and Mineral Resources is declining almost 2 percent.

Oil stocks are weak. Woodside Energy is losing almost 1 percent and Beach energy is declining more than 2 percent, while Santos and Origin Energy are down more than 1 percent each.

In the tech space, Afterpay owner Block, WiseTech Global, Xero and Zip are losing more than 1 percent each, while Appen is adding almost 5 percent.

Among the big four banks, Commonwealth Bank and Westpac are edging up 0.1 to 0.2 percent each, while ANZ Banking is edging down 0.2 percent. National Australia Bank is flat.

Among gold miners, Evolution Mining and Northern Star Resources are edging down 0.2 to 0.5 percent each, while Newmont is losing almost 1 percent and Gold Road Resources is declining almost 2 percent. Resolute Mining is flat.

In the currency market, the Aussie dollar is trading at $0.638 on Wednesday.

The Japanese stock market is trading notably lower on Wednesday, reversing to the gains in the previous two sessions, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling well below the 39,200 level, with weakness in index heavyweights and technology stocks partially offset by gains in exporter stocks.

The benchmark Nikkei 225 Index closed the morning session at 39,112.80, down 254.78 points or 0.65 percent, after hitting a low of 39,164.38 and a high of 39,391.39 earlier. Japanese stocks ended notably higher on Tuesday.

Market heavyweight SoftBank Group is losing more than 1 percent and Uniqlo operator Fast Retailing is edging down 0.3 percent. Among automakers, Honda is edging down 0.5 percent and Toyota is also edging down 0.1 percent.

In the tech space, Advantest is losing more than 2 percent, Screen Holdings is down more than 1 percent and Tokyo Electron is declining almost 1 percent.

In the banking sector, Sumitomo Mitsui Financial and Mizuho Financial are edging down 0.2 to 0.3 percent each, while Mitsubishi UFJ Financial is gaining more than 1 percent.

Among the major exporters, Canon and Sony are edging up 0.3 percent each, while Mitsubishi Electric is gaining almost 1 percent and Panasonic is adding more than 1 percent.

Among other major losers, Disco is losing more than 3 percent.

Conversely, Kawasaki Heavy Industries is surging almost 6 percent and IHI is gaining more than 4 percent, while Konica Minolta, Ryohin Keikaku and Kikkoman are adding more than 3 percent each. T&D Holdings and Kuraray are advancing almost 3 percent each.

In economic news, producer prices in Japan were up 3.7 percent on year in November, the Bank of Japan said on Wednesday. That exceeded expectations for an increase of 3.4 percent and was up from the upwardly revised 3.6 percent gain in October (originally 3.4 percent).

On a monthly basis, producer prices were up 0.3 percent - unchanged from the October reading following an upward revision from 0.2 percent and exceeding expectations for 0.2 percent.

Export prices were up 0.2 percent on month and 0.7 percent on year, the bank said, while import prices slipped 0.5 percent on month and 2.8 percent on year.

In the currency market, the U.S. dollar is trading in the higher 151 yen-range on Wednesday.

Elsewhere in Asia, New Zealand, China, Hong Kong, South Korea and Indonesia are higher by between 0.2 and 0.9 percent each. Singapore, Malaysia and Taiwan are lower by between 0.4 and 0.7 percent each.

On the Wall Street, stocks moved moderately lower over the course of the trading session on Tuesday after failing to sustain an early move to the upside. The major averages added to the losses posted during Monday's session, with the Nasdaq and the S&P 500 pulling back further off last Friday's record closing highs. The major averages dipped to new lows for the session in the latter part of the trading day. The Dow slid 154.10 points or 0.4 percent to 44,247.83, the Nasdaq fell 49.45 points or 0.3 percent to 19,687.24 and the S&P 500 slipped 17.94 points or 0.3 percent to 6,034.91.

The major European markets all also moved to the downside on the day. The French CAC 40 Index slumped by 1.1 percent, the U.K.'s FTSE 100 Index slid by 0.9 percent and the German DAX Index edged down by 0.1 percent.

Crude oil prices settled higher on Tuesday amid hopes that demand from China will increase following recent stimulus measures announced by the Chinese government. West Texas Intermediate Crude oil futures for January closed up $0.22 or 0.32 percent at $68.59 a barrel.