Asian stocks were mixed Wednesday followed Wall Street's mostly positive performance ahead of key US inflation data that could influence the pace of market-boosting rate cuts by the Federal Reserve. US futures and oil prices were little changed. Tokyo's Nikkei 225 index edged 0.1% higher to 38,505.54. The Kospi rose 0.2% to 2,502.94 after South Korean law enforcement officials detained impeached President Yoon Suk Yeol on Wednesday in connection with his failed declaration of martial law last month. South Korea's unemployment rate reached 3.7% in December on a seasonally adjusted basis, the highest since June 2021, amid political uncertainty, the government reported. The Hang Seng in Hong Kong added 0.2% to 19,264.46 after media reported that President-elect Donald Trump's incoming economic team is discussing gradually ramping up tariffs in different phases. The Shanghai Composite shed 0.3% to 3,232.98. Australia's S&P/ASX 200 was flat at 8,233.10. On Tuesday, the S&P 500 rose
Washington Post reported on that Trump aides were exploring tariff plans that would be applied to every country but only cover certain sectors deemed critical to national or economic security
Volumes were light with holiday for New Year looming and Japan on holiday for the rest of the week, with the Santa-rally losing some steam as elevated Treasury yields weigh on high equity valuations
Asian stocks have taken the cue from Wall Street, with MSCI's broadest index of Asia-Pacific shares outside Japan down 1 per cent
Dollar index, which measures the US currency against six rivals, was steady at 106.77 and on course for 5 per cent gain for the year
It has been a week of rate cuts from Switzerland, Canada and the European Central Bank, which had rate differentials working in the favour of the US dollar
Shares of Tesla jumped 12 per cent in after-hours trading after EV maker reported robust third quarter profits and surprised analysts with a prediction for a 20-30 per cent growth in sales next year
The Nikkei has had a choppy few sessions this week as investors weighed the rising geopolitical tensions against the domestic rate outlook
Geopolitics loomed large as ever with Republican presidential candidate Donald Trump the subject of a second assassination attempt on Sunday according to the FB
Brent rose 51 cents to $79.53 a barrel, while U.S. crude added 50 cents to $75.33 per barrel
As well as July retail sales, there is data on industrial output and housing starts, along with several surveys on regional manufacturing and consumer sentiment
The Bank of Japan also meets Wednesday and markets imply a 70% chance it will hike rates by 10 basis points to 0.2%, with some chance it could move by 15 basis points
MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.1 per cent and was headed for its worst week in over a month with a 2.4 per cent loss
Markets have now fully priced in a quarter-point rate cut from the Fed in September, with a total easing of 68 basis points expected by the end of the year
Trading was thinned in Asia with Australia, China, Hong Kong and Taiwan out for public holidays, but MSCI's broadest index of Asia-Pacific shares outside Japan still slumped 0.46 per cent
Late last week, partly in response to some policymakers' comments, global bonds retraced a rally that had followed an encouraging fall in US CPI data
Chinese shares see earlier gains, with bluechip stocks rising 1 per cent and Hong Kong's Hang Seng index increasing 1.2 per cent
Crude oil wallowed near two-month lows amid signs of easing supply pressure and continued hopes for a Middle East ceasefire
Trading was thinned in Asia with Japan out for a holiday, though markets in mainland China got off to an upbeat start after returning from an extended break
Oil prices, however, hardly reacted to the news, as traders had largely priced in a retaliatory attack from Iran that would likely further disrupt supply chains