Investing.com — Most Asian shares rose on Wednesday, led by gains in the technology sector, while Australian shares tumbled after better-than-expected inflation data stoked fears of rising interest rates.
Regional markets received some positive signs from Wall Street, especially a rebound in shares of major semiconductor manufacturers such as NVIDIA Corporation (NASDAQ:), which helped boost stock prices, but stocks ended lower as worries over upcoming inflation data led cyclical stocks to fall.
U.S. stock index futures were weak in Asian markets.
Australian shares fall as rising CPI raises interest rate hike fears
Australia's index was the worst performing in Asia, falling 1% after May inflation data came in higher than expected.
The figures have raised speculation that the Reserve Bank of Australia may raise interest rates in August. The central bank has not explicitly said whether to do so, but it did strike a more hawkish tone at its meeting last week than markets had expected.
Wednesday's consumer price index showed inflation moving further away from the RBA's 2-3% annual target range, a scenario that would likely invite a more hawkish stance from the central bank. Australian government bond yields also rose sharply after the release.
Nikkei, KOSPI rise on tech stock gains
Japan's stock index was the best performing in Asia, rising 0.9% on gains in big technology stocks, led by semiconductor makers. South Korea's stock index also rose 0.3% on gains in semiconductor makers.
The chipmaker followed artificial intelligence darling Nvidia's overnight gains after the company recovered from a three-day sell-off. Asian shares linked to the company also posted big gains on Wednesday, with Japan's Advantest Corporation (TYO:) Up 6.1%, SK hynix Co., Ltd. (KS:) It increased by 4.4%.
Shares of TSMC (TW:) (NYSE:), the world's largest contract chipmaker, rose 1% in Taiwan.
Chinese stocks slump as trade tensions continue
China's stock index and main stock index each fell 0.4 percent, while Hong Kong's stock index rose slightly on Wednesday.
Sentiments towards China remain highly tense over fears of a potential trade war with the West, especially after Beijing has hinted at such a possibility in the face of European tariffs on imports of Chinese electric vehicles.
Fears of a trade war caused China's stock index to plummet through June and also dampened hopes for further domestic stimulus.
Elsewhere in Asia, Indian stock index futures got off to a moderately positive start after surging to an all-time high on Tuesday. Indian markets have been recovering following the results of the 2024 general election, with renewed optimism about the Indian economy being the main driver of stock rallies in recent weeks.
