Investing.com - On Wednesday, Asian Pacific markets began on a mixed note following modest gains in U.S. stocks as investors remain optimistic about potential Federal Reserve rate cuts in the first half of 2024.
The S&P/ASX 200 added 0.2%, the KOSPI 200 fell 0.7%, and the Nikkei 225 fell 0.3% by 11:30am AEDT.
U.S. stocks closed slightly higher on Tuesday. The Dow Jones Industrial Average added 0.2%, nearing 35,416. The S&P 500 index ticked 0.1% higher and the Nasdaq Composite Index closed up 0.3%.
Investors in equity markets were encouraged after Fed Governor Christopher Waller said on Tuesday that a cooling economy could help bring inflation down to the central bank's 2% annual target. He also mentioned the uncertainty surrounding further interest rate hikes. The 10-year Treasury yield dropped to 4.335%, its lowest in about two months.
In the commodities market, Brent crude oil climbed 2.1% to US$81.62 a barrel, while gold rose 1.4% to US$2,041.29.
Chinese shares closed higher, largely due to strong performances from auto stocks following reports that Huawei has invited four smart-car partners to invest in its smart-car joint venture with Chongqing Changan Automobile. Property stocks fell despite a range of stimulus measures.
Hong Kong stocks closed lower, primarily due to losses among tech giants and food-and-beverage companies. The Hang Seng Index fell 1.0% to 17354.14, while the Hang Seng Tech Index lost 0.8%.
The Nikkei Stock Average in Japan closed slightly lower at 33408.39 due to yen strength, which negatively impacts exporters' overseas earnings when converted back to Japan.
Indian shares saw a slight increase, led by Adani companies and energy stocks. The country's Sensex ended 0.3% higher at 66174.20.
European shares closed mixed as investors await crucial U.S. inflation data later this week. The Stoxx Europe 600 ended down 0.3% at 457.04, although major German, Italian, and Spanish indexes rose in line with gains in U.S. stocks. The FTSE 100 closed Tuesday down 0.07% in another soft session for markets in Europe.