Asian stocks mostly lower, as Fed uncertainty, China weakness weigh

On Wednesday Asian stocks were mostly lower, as market players were concerned about the prospect of higher U.S. interest rates following improved economic data as well as the continuous fears about China's weakening growth.

Investors became cautious following recent economic data on the world's two biggest economies. U.S. government data showed that in February consumer prices rose in for the first time in four months while new home sales climbed to their fastest pace in seven years. That was a good sign for the world's No. 1 economy that nonetheless also raises concerns the Fed could soon raise interest rates. The reports came after HSBC's preliminary purchasing managers' index showed Chinese manufacturing activity slumped to the lowest in 11-months, signaling further weakness in the second biggest economy.

Japan's Nikkei 225 index slipped 0.4 percent to 19,638.90 and South Korea's Kospi lost less than 0.1 percent to 2,040.23.

Hong Kong's Hang Seng climbed 0.4 percent to 24,490.77 while the Shanghai Composite Index in mainland China lost 1.1 percent to 3,652.57.

Australia's S&P/ASX 200 was practically unchanged at 5,967.60, hovering near its highest level in more than seven years. Southeast Asian indexes were mixed.

In the forex market, the USD rose 0.08% against the JPY and closed at 119.74 in the Asian session. At GMT0300, the pair is trading at 119.60, with the USD trading 0.11% lower from yesterday’s close. The pair is expected to find support at 119.22, and a fall through could take it to the next support level of 118.83 and to find its first resistance at 119.99, and a rise through could take it to the next resistance level of 120.38, says Action Forex.

The euro strengthened to $1.0926 from $1.0914.

Earlier today, the Bank of Japan indicated that the nation’s corporate service price index recorded a rise of 3.30% on a YoY basis in February, meeting market expectations. In the previous month, the corporate service price index had advanced by a revised 3.50%.

Overnight, U.S. stocks ended slightly lower as latest report on consumer prices and signs of possible renewed strength in the dollar left investors indecisive. The Standard & Poor's 500 fell 0.6 percent to 2,091.50 while the Dow Jones Industrial Average slipped 0.6 percent to 18,011.14. The Nasdaq composite fell 0.3 percent to 4,994.73.

In the commodity market, benchmark U.S. crude futures lost 10 cents to $47.41 in electronic trading on the New York Mercantile Exchange. The contract rose 6 cents to close at $47.51 a barrel. Brent crude, a benchmark for international oils, slipped 3 cents to $55.08 in London.