Asian Shares Decline Ahead Of Fed Decision

(RTTNews) - Asian stocks drifted lower on Wednesday as investors awaited key U.S. inflation data as well as a Federal Reserve policy decision later in the day for additional clues on the outlook for interest rates.

Producer and consumer price data coming out of China attracted investor attention early in the session. China's consumer inflation held steady in May while factory gate inflation eased, official data revealed.

Investors also weighed reports suggesting that the Biden administration is considering further restrictions on China's access to chip technology used for artificial intelligence.

The dollar held firm, keeping gold under pressure in Asian trading.

Gold was marginally lower while oil extended gains for a third straight session on signs of declining U.S. inventories and OPEC's decision to maintain its forecast for relatively strong growth in global oil demand in 2024.

China's Shanghai Composite index wobbled between gains and losses before closing 0.31 percent higher at 3,037.47. Hong Kong's Hang Seng index tumbled 1.31 percent to 17,937.84.

China Evergrande New Energy Vehicle Group shares plummeted 21 percent after the subsidiary of developer China Evergrande said it faces the risk of losing key assets such as land and equipment.

Japanese markets declined as investors braced for the U.S. and Japanese central bank policy decisions. Speculation is rife that the Bank of Japan will trim back JGB purchases in its announcement from Friday's meeting.

The Nikkei average dipped 0.66 percent to 38,876.71 while the broader Topix index settled 0.73 percent lower at 2,756.44.

Heavyweights like Fast Retailing and Recruit Holdings fell 2.5 percent and 3 percent, respectively while TDK surged 4.4 percent and Murata Manufacturing jumped 2.6 percent.

Data showed earlier in the day that Japan's wholesale price inflation jumped in May, due to both the rising cost of electricity and the weak yen.

Seoul stocks closed higher, with the Kospi average rallying 0.84 percent to 2,726.17.

Technology stocks performed well after Apple unveiled new AI features meant to rekindle demand for iPhones. Heavyweight Samsung Electronics rallied 1.7 percent SK Hynix added 1.2 percent.

Australian markets ended lower, with miners and tech stocks pacing the decliners. Energy stocks outperformed due to firmer crude oil and natural gas prices.

The benchmark S&P ASX 200 dropped 0.51 percent to 7,715.50 while the broader All Ordinaries index ended down 0.53 percent at 7,963.10.

Across the Tasman, New Zealand's benchmark S&P NZX-50 index slipped 0.37 percent to 11,741.88.

U.S. stocks ended mixed overnight as Apple unveiled its artificial intelligence features and Treasury yields extended their decline ahead of upcoming inflation data and the Federal Reserve's policy meeting.

The tech-heavy Nasdaq Composite climbed 0.9 percent and the S&P 500 edged up 0.3 percent to reach new record closing highs while the Dow dipped 0.3 percent.