Asian Shares Decline On Earnings, China Concerns

(RTTNews) - Asian stocks struggled for direction before closing mostly lower on Wednesday after the release of disappointing earnings from Tesla and Alphabet.

Lingering concerns over slowing growth in the world's second-largest economy also kept investors nervous.

The U.S. dollar was broadly firm in Asian trade as investors awaited the U.S. GDP data and the Fed's favored measure of inflation this week for additional clarity on whether the Federal Reserve will cut interest rates twice this year, in September and December.

Oil rebounded to snap a three-day decline amid signs of falling U.S. crude inventories and growing supply risks from wildfires in Canada.

Gold consolidated above $2,400 per ounce after snapping a four-day losing streak on Tuesday.

China's Shanghai Composite index dipped 0.46 percent to 2,901.95 on worries that a trade war with the EU and the U.S. may weigh on economic growth.

Hong Kong's Hang Seng index fell 0.91 percent to 17,311.05. Taiwan financial markets were closed due to a typhoon.

Japanese markets led regional losses as the yen strengthened due to rising expectations of a rate hike at next week's Bank of Japan (BOJ) policy meeting.

The central bank should more clearly show its intention to normalize monetary policy, ruling party heavyweight Toshimitsu Motegi said on Monday as inflation continues to outpace the BOJ's target and wage growth.

Meanwhile, Japan's factory activity contracted slightly in July while the service sector picked up the slack, a business survey showed today.

The Nikkei average fell 1.11 percent to 39,154.85 while the broader Topix index settled 1.42 percent lower at 2,793.12.

Seoul stocks ended lower due to losses in the auto and tech sectors. The Kospi average shed 0.56 percent to close at 2,758.71. Market bellwether Samsung Electronics lost 2.3 percent and Hyundai Motor gave up 1.9 percent. Australian markets ended a choppy session marginally lower, dragged down by property developers and energy stocks.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index climbed 0.85 percent to 12,530.99 as investors cherry-picked beaten down stocks.

U.S. stocks struggled for direction before eventually ending modestly lower overnight as investors assessed mixed earnings reports and monitored the fast-changing presidential contest.

Coca-Cola and GE Aerospace posted impressive earnings, but General Motors reported weakness in its China business and UPS reported lower profits and revenues.

The Dow slid 0.1 percent, the tech-heavy Nasdaq Composite ended little changed and the S&P 500 eased 0.2 percent.