Asian stocks ended mixed on Wednesday as investors grappled with the impact of higher interest rates on economic growth.<\/p>\n
Profits at Chinese industrial firms posted a surprise surge of 17.2 percent in August from a year earlier, pointing to signs of economic recovery in the world’s second-largest economy<\/span>.<\/p>\n Gains in Australian inflation for August matched expectations, adding to the case for a pause in rate hikes next month.<\/p>\n The dollar index steadied near 10-month highs and the yen held weak at 149 per dollar after reports that the Japanese government is putting together a stimulus package to cushion inflation’s rise and boost growth.<\/p>\n Gold hit over a one-month low on interest rate worries, while oil prices rose on worries about tight supply.<\/p>\n China’s Shanghai Composite Index edged up 0.2 percent to 3,107.32 as signs that the economy is stabilizing lifted sentiment ahead of the long holiday weekend.<\/p>\n Hong Kong’s Hang Seng Index climbed 0.8 percent to 17,611.87. Mainland Chinese markets<\/span> will be closed from September 29 to October 6.<\/p>\n China Evergrande Group plummeted 19 percent in Hong Kong following an unconfirmed report that its chairman was placed under police surveillance.<\/p>\n Shares of Country Garden Holdings, another debt-encumbered developer, fell 2.2 percent.<\/p>\n Japanese markets eked out modest gains after the government retained its economic view of a modest recovery in the world’s third-largest economy.<\/p>\n The Nikkei 225 Index recouped early losses to settle 0.2 percent higher at 32,371.90, while the broader Topix Index closed up 0.3 percent at 2,379.53.<\/p>\n Pharma stocks such as Chugai Pharmaceutical and Daiichi Sankyo surged around 4 percent each, while tech stocks such as Advantest, Tokyo Electron and Screen Holdings rose 1-2 percent. Heavyweight Fast Retailing declined 1.5 percent.<\/p>\n Seoul stocks ended little changed, with the Kospi recovering from an early slide to finish marginally higher at 2,465.07 ahead of a long holiday weekend.<\/p>\n South Korea’s stock, ETF, derivatives and commodity markets will be closed during the extended Chuseok holiday from Thursday through October 3.<\/p>\n Australian markets slipped after data showed inflation accelerated in August, driven by a surge in fuel prices.<\/p>\n The annual rate of consumer price inflation picked up to 5.2 percent from 4.9 percent, coming in line with expectations.<\/p>\n The benchmark S&P\/ASX 200 Index dipped 0.1 percent to 7,030.30, while the broader All Ordinaries Index ended down 0.1 percent at 7,229.80.<\/p>\n Star Entertainment Group shares plummeted 16 percent as trading resumed after a discounted A$750 million ($479.63 million) equity raising.<\/p>\n Across the Tasman, New Zealand’s benchmark S&P\/NZX-50 Index dropped 0.2 percent to 11,316.81.<\/p>\n U.S. stocks pulled back sharply overnight to reach their lowest closing levels in over three months on uncertainty about the Fed’s rate path and worries over a possible government shutdown.<\/p>\n In economic releases, a measure of consumer confidence hit a four-month low in September and sales of newly built homes fell in August – raising fears that the world’s largest economy could be headed for a recession.<\/p>\n In an interview with the Times of India, JPMorgan CEO Jamie Dimon warned investors to prepare for a worst-case scenario where the Fed lifts rates to 7 percent alongside stagflation.<\/p>\n Minneapolis Federal Reserve President Neel Kashkari also wrote in an essay that there is a 40 percent chance the Federal Reserve will have to push rates “meaningfully higher” to combat stubborn services inflation.<\/p>\n The S&P 500 plummeted 1.5 percent to close below 4,300 for the first time since June 9, while the Dow gave up 1.1 percent and the tech-heavy Nasdaq Composite plunged 1.6 percent. <\/p>\n