Asian Shares Mostly Higher In Cautious Trade; Fed Minutes Eyed

Asian stocks were mostly higher on Wednesday, though the upside remained capped ahead of the release of minutes of the U.S. Federal Reserve’s latest policy meeting later in the day.

The dollar index took a breather and gold traded flat, while oil edged up slightly to recover from six-month lows after industry data showed a larger-than-expected drop in U.S. oil and gasoline stocks.

Japan’s Nikkei index climbed 0.8 percent 29,101, breaking through the 29,000 level for the first time since Jan.6, following encouraging earnings updates from U.S. retail giants.

Japan logged a trade deficit for a 12th consecutive month in July, data showed earlier today as a surge in imports overwhelmed export growth.

China’s Shanghai Composite index rose 0.2 percent, a day after policymakers announced a slew of stimulus measures to revive growth.

There were also reports that Beijing is considering more debt guarantees to support the property sector.

Hong Kong’s Hang Seng index gained 0.8 percent as investors await earnings from internet giant Tencent Holdings.

Seoul stocks were moving lower after three days of gains. The Kospi average slipped half a percent to 2,522, with tech and auto stocks pacing the decliners.

Australian markets were little changed with a positive bias after Q2 wage growth lagged forecasts.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 index was down 0.2 percent after the country’s central bank announced a fourth consecutive 50 bps rate hike to 3.00 percent, a level not seen since September 2015.

The central bank warned that domestic inflationary pressure was still high and underlying inflation was still rising.

U.S. stocks ended mixed overnight, as Walmart and Home Depot posted better-than-expected financial results and a slew of economic data painted a mixed picture of the economy.

Housing starts fell again in July and the New York’s Fed’s manufacturing gauge eased, while industrial production bounced back on strong manufacturing, separate reports showed.

The Dow rose 0.7 percent to extend gains for a fifth straight session and the S&P 500 edged up 0.2 percent to reach its best closing level in almost four months, while the tech-heavy Nasdaq Composite slipped 0.2 percent.

European stocks rose for a fifth straight session on Tuesday amid hopes central banks will be less aggressive with rate hikes in the coming months.

The pan European Stoxx 600 inched up 0.2 percent. The German DAX gained 0.7 percent, France’s CAC 40 index added 0.3 percent and the U.K.’s FTSE 100 inched up 0.4 percent.

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