Investing.com - As Wall Street continues its record-setting rally, Asian Pacific shares exhibited a diverse response at the start of trading on Wednesday.
By 11:00 am AEST (1:00 am GMT) the S&P/ASX 200 added 0.3%, the KOSPI 200 in South Korea and Japan's Nikkei 225 saw losses of 0.1% and 0.7% respectively.
In the US, the S&P 500 and the NASDAQ Composite both experienced growth, rising 0.3% and 0.2% respectively, each setting new record highs. Meanwhile, the Dow Jones Industrial Average added 0.2%.
While most market observers anticipate an interest rate cut from the Federal Reserve this year, there's uncertainty around the exact timeline. Chris Waller, a Governor at the Federal Reserve, commented on Tuesday that the central bank has been making strides on inflation. However, Waller also highlighted that a few more months of subdued inflation data are necessary before the Fed considers rate cuts.
Some investors caution that inflated stock prices could leave the market susceptible to a significant selloff if economic data doesn't meet expectations. So far this year, the benchmark index has risen 11.6%.
On the individual stock front, Lowe’s Companies Inc (NYSE:LOW) shares slipped 1.9% on Tuesday following a reported drop in sales. In contrast, Macy’s Inc (NYSE:M) stock ascended 5.1% after the company raised its profit outlook.
Investors are eagerly awaiting an update from tech giant NVIDIA Corporation (NASDAQ:NVDA), which is slated to announce its results after market close on Wednesday. Market analysts predict Nvidia will report revenues of $24.53 billion and a profit of $5.58 per share.
In the commodities arena, Brent crude oil fell 1.4% to US$82.53 a barrel, while gold slipped 0.2% to US$2,421.05.
In local bond markets, the yield on Australian 2 Year government bonds rose to 3.95%, while the 10 Year yield also increased to 4.25%. In contrast, US Treasury notes fell, with the 2 Year yield at 4.83% and the 10 Year yield at 4.41%.
Chinese shares closed lower, mainly affected by commodity and mining stocks. The optimism generated by recent property stimulus seems to be fading. Shandong Gold Mining and Zijin Mining plunged 5.35% and 4.2%, respectively. Zhongjin Gold Corp. slid 3.8%. On the flip side, the banking sector saw gains with Bank of Nanjing and Bank of Chengdu rising 1.9% and 1.65%, respectively. China Vanke ended 0.1% higher after procuring a CNY1.2 billion loan from the Bank of China. The benchmark Shanghai Composite Index closed 0.4% lower at 3157.97, the Shenzhen Composite Index fell 0.75%, and the ChiNext Price Index declined 0.8%.
Hong Kong shares closed lower as investors cashed in profits. Li Auto (NASDAQ:LI), which plunged 19% following its weaker-than-expected 1Q results, negatively affected the index and dampened investor morale. Other carmakers like BYD and XPeng dipped 4.4% and 10.5% respectively, ahead of their 1Q results due after market close. The pharmaceutical sector also saw a widespread decline, with JD Health International down 8.4%. The benchmark Hang Seng Index ended 2.1% lower at 19220.62, and the Hang Seng Tech Index fell 3.7%.
Japanese stocks closed lower, affected by declines in real estate and machinery stocks, amid ongoing worries about increasing borrowing costs. Sumitomo Realty & Development declined 2.4% and Daikin Industries dropped 4.7%. The Nikkei Stock Average fell 0.3% to 38946.