Markets in Asia were once again mixed by the close on Wednesday, with stocks in Hong Kong returning to growth after two sessions of large declines.
In Japan, the Nikkei 225 was down 1.39% at 27,581.66, as the yen weakened 0.15% against the dollar to last trade at JPY 109.95.
Of the major components on the benchmark index, automation specialist Fanuc was down 0.26%, fashion firm Fast Retailing lost 2.65%, and technology conglomerate SoftBank Group dropped 4.84%.
Carmaker Mitsubishi Motors rocketed 8.42%, meanwhile, after the company lifted its operating profit expectations by 33.3% for the current 2022 financial year.
The broader Topix index lost 0.95% by the end of trading in Tokyo, closing at 1,919.65.
On the mainland, the Shanghai Composite was off 0.58% at 3,361.59, and the smaller, technology-heavy Shenzhen Composite was 0.78% lower at 2,313.20.
South Korea’s Kospi eked out gains of 0.13% to 3,236.86, while the Hang Seng Index in Hong Kong rose 1.54% to 25,473.88.
Stocks in the special administrative region had fallen more than 8% over the prior two sessions, amid fresh fears of a regulatory crackdown on the technology sector by Beijing.
China-focussed tech plays were in the green on Wednesday after the recent sell-off, with Alibaba up 1.83%, Meituan leaping 7.53%, and Tencent managing growth of 0.27%.
The blue-chip technology stocks in Seoul were mixed, with Samsung Electronics up 0.89%, and SK Hynix down 1.72%.
“Asia markets have continued to be buffeted by turmoil created by events in China and the regulatory environment there, as we look towards the Fed later today,” said CMC Markets chief market analyst Michael Hewson.
“It almost seems counterintuitive that the change of narrative from the June Fed meeting, which saw a number of Fed members start to talk in terms of a tapering of asset purchases, as well as a 2022 rate hike, appears to have come just before an increase in concerns about a slowdown in the global recovery story.”
Hewson said the sharp rise in Delta variant cases seen over the last few weeks had fuelled concerns, that for all the optimism over economic reopening, the reality was that coming out of the pandemic was likely to be a “much longer road” than the market originally priced.
“Some of the fears over inflation have already started to subside in the bond markets, whether by accident or design, largely due to cooling commodity prices, as well as concerns that the global recovery may well be weaker than anticipated all the way back in March.”
Oil prices were higher at the end of the Asian day, with Brent crude last up 0.87% at $75.13 per barrel, and West Texas Intermediate ahead 1.1% at $72.44.
In Australia, the S&P/ASX 200 was down 0.7% at 7,379.30, as investors digested the latest consumer inflation data out of the sunburnt country.
According to the Australian Bureau of Statistics, the country’s consumer price index rose 0.8% in the June quarter.
Across the Tasman Sea, New Zealand’s S&P/NZX 50 managed a rise of 0.04% to 12,595.32, with the country’s technology sector dragging on the broader index.
Pushpay Holdings was down 2.2%, Serko was 1.9% weaker, and Vista Group was 3% lower by the end of trading in Wellington.
The down under dollars were both weaker against the greenback, with the Aussie last off 0.14% at AUD 1.3607, and the Kiwi retreating 0.24% to NZD 1.4406.
