Shares traded mostly lower across Asia-Pacific markets on Wednesday as investors turned cautious, despite remarks overnight from Federal Reserve Chair Jerome Powell that attempted to ease some worries around higher interest rates and inflation.
Japanese markets returned Wednesday from holiday, with the Nikkei 225 dumping 484.33 points, or 1.6%, to 29,617.70.
The Japanese yen was at 105.55 per U.S. dollar.
In Hong Kong, the Hang Seng crumbled 914.4 points, or 3%, to 29,718.24.
The Hong Kong government said it will spend more than $15 billion in the coming financial year on measures to bolster its recession-struck economy.
In Australia, among the so-called Big Four banks in the country, ANZ shares were down 0.7%, Commonwealth Bank shares were down 0.6%, and Westpac fell 0.5%. National Australia Bank shares reversed earlier losses to trade up 0.2%.
Wages in Australia grew at their slowest pace on record annually, according to the Australian Bureau of Statistics. Data showed the wage price index grew 0.6% for the three months that ended in December. The annual wage growth remained at a record low of 1.4% for the second consecutive quarter.
The Reserve Bank of Australia has said that there needs to be a sustained period of labor market tightness to generate the wages growth needed to see inflation return to the central bank’s 2%-3% target range. Only then, would the central bank move to increase its cash rate.
The Australian dollar changed hands at $0.7914, weakening from an earlier level of $0.7944.
In other markets
In China, the CSI 300 lost 142.1 points, or 2.6%, to 5,437.57.
In Taiwan, the Taiex index dropped 230.87 points, or 1.4%, to 16,212.53.
In Singapore, the Straits Times index went against the grain and gained 33.88 points, or 1.2%, to 2,924.58.
In Korea, the Kospi slumped 75.11 points, or 2.5%, to 2,924.58
In New Zealand, the NZX 50 slouched 106.42 points, or 0.9%, to 12,282.42.
In Australia, the ASX 200 fell 61.35 points, or 0.9%, to 6,777.82
