Investing.com - Asian Pacific shares were mostly lower at Wednesday's open, following a modest rise in US stocks, spurred by the financial sector that pushed the S&P 500 to another record.
By 11:00 am AEST (1:00 am GMT), the S&P/ASX 200 and the Nikkei 225 declined by 0.1% and 0.5%, respectively, while the KOSPI 200 remained unchanged.
US financial firms nudged the S&P 500 to a fresh record on Tuesday, marking a break from the recent trend of technology companies leading the stock index's gains. Goldman Sachs Group Inc (NYSE:GS) and Intercontinental Exchange Inc (NYSE:ICE) shares ended at all-time highs, while six other finance companies in the S&P 500 closed at their highest price in at least a year.
The S&P 500 and the NASDAQ Composite both edged up to set new records, while the Dow Jones Industrial Average declined slightly. Chip makers and other AI-focused firms initially led the way, but technology stocks turned lower as bank shares and Treasury yields rose following Federal Reserve Chairman Jerome Powell's midmorning remarks to Congress.
Powell indicated that recent employment data suggest a "cooling" labor market and stressed the importance of balancing the potential risks of high rates causing economic downturn and unemployment against the risk of reigniting inflation with premature rate cuts.
US-listed shares of BP (LON:BP) PLC ADR (NYSE:BP) fell 4.8% after the British energy giant warned that weak oil trading and lower refining margins would impact earnings and that it would book an impairment of up to $2 billion for the second quarter.
In China, shares closed higher after a weak start, with semiconductor and auto stocks lifting the indexes. Hong Kong shares ended flat as investors awaited new catalysts and key Chinese economic data due Wednesday. In Japan, the Nikkei Stock Average ended 2.0% higher at a record closing high, driven by a weak yen raising expectations for earnings growth. India's Sensex rose 0.5% to close at a record high, led by auto stocks.
In the UK, stocks slipped Tuesday, with the FTSE 100 Index dropping 0.7%. Other European markets also closed lower, with the STOXX 600 Index down 0.9%, Germany's DAX slipping 1.2%, and France's CAC 40 declining 1.6%.