Asian shares were mixed on Wednesday as weaker-than-expected U.S. ISM services data lowered the chances the Federal Reserve will hike rates this month.
The Nikkei 225 index in Tokyo backpedaled 69.54 points, or 0.4%, to 17,012.44, as the yen strengthened against the U.S. dollar. A stronger yen is generally seen as negative for Japanese stocks as it makes exports more expensive and reduces overseas earnings when translated back into the home currency.
The dollar/yen pair fell to 101.36 by late afternoon local time, below the 103 levels it had held for the past three trading sessions.
In Hong Kong, the Hang Seng Index moved lower 45.87 points, or 0.2%, to 23,741.81
In Japan, internet company Rakuten's shares rose 7.2% after the announcement that it would be included in the Nikkei Average
South Korea's Hanjin Shipping won a U.S. judge order extending bankruptcy protections so its vessels can dock at U.S. ports without fear of creditors trying to seize the ships, Reuters reported. The troubled container shipper saw shares shed 2.2%, retracing gains after Tuesday's 29.9% surge.
Australian markets saw their gains limited by losses in its energy sector, which was lower by 1.3%, but offset by strength in the material sector, which was up 0.4%
The Australian dollar was trading at $0.7672 U.S. during Asian trade, up from levels under $0.75 last week, getting a boost from waning expectations for a September Fed hike and after the Reserve Bank of Australia (RBA) on Tuesday kept interest rates on hold.
Analysts examining the RBA statement noted that the central bank appeared to be signaling concerns that further rate cuts might overheat the housing market.
Australia's gross domestic product (GDP) for the second quarter rose 0.5% on-quarter, just a smidgen below expectations of 0.6% growth from an economists’ poll
Despite higher crude prices, oil-related stocks in Asia were mostly lower. Australia's Santos was lower by 5% and Woodside Petroleum was down 0.8% Japan's Inpex slipped 0.9%, while mainland China's Petrochina was flat.
In other markets
The Shanghai CSI 300 fell 1.81 points, or 0.1%, to 3,340.82
The Taiex Index in Taiwan gained 77.22 points, or 0.8%, to 9,259.07
In Korea, the Kospi index faded 4.65 points, or 0.2%, to 2,061.88
In Singapore, the Straits Times Index dropped 2.9 points, or 0.1%, to 2,893.65
In New Zealand, the NZX 50 added 67.56 points, or 0.9%, to 7,571.11
The ASX 200 regained 10.62 points, or 0.2%, to 5,424.25
