Asia-Pacific markets traded mixed on Wednesday, as Federal Reserve Chairman Jerome Powell overnight acknowledged that inflation is declining — a sign the central bank may soon pause its rate hikes. U.S. futures, meanwhile, are mixed after President Joe Biden's State of the Union address.
The Nikkei 225 fell 0.29% to 27,606.46, dragged down by declining shares of Sharp, Nintendo and Softbank after posting disappointing results. The Topix, however, closed fractionally higher at 1,983.97.
In South Korea, the Kospi rose 1.3% to close at 2,483.64, leading gains in the region and the Kosdaq rose 0.93% to end the day at 779.98. The S&P/ASX 200 climbed 0.35% to 7,530.1 as investors further digested the Reserve Bank of Australia's Tuesday hike that also included hawkish commentary.
Hong Kong's Hang Seng index fell 0.11% in its final hour of trade, while the Hang Seng Tech index declined 1.75%. In mainland China, the Shenzhen Component closed 0.61% lower to 11,853.46, while the Shanghai Composite fell 0.49% to close at 3,232.14.
Overnight on Wall Street, all three major indexes closed higher, with the Nasdaq Composite posting the biggest daily gain, climbing nearly 2%. Investors cheered Powell's comments on disinflation, hoping they indicated the central bank could continue slowing on its interest rate hike campaign.