SYDNEY, NSW, Australia-listed stocks in Asia were higher on Wednesday, but equity markets in Hong Kong and mainland China lagged the region. The U.S. dollar was stronger against the yen, particularly the U.S. dollar.
Markets are pricing in June rate hikes from the UK, U.S. Sweden, Australia and Canada, according to Societete Generale analyst Kit Juckes, according to Societete Generale analyst Kit Juckes.
The more markets focus on inflation data and central bank action, the more likely it is that we have a bumpy start to the summer in risk sentiment and a strong one for the dollar. In Japan, the Nikkei 225 pushed ahead, adding 178.09 points or 0.65 percent to 27,457. The Australian All Ordinaries were up 7.70 points or 0.10 percent to 7,462. In New Zealand, the S&P NZX 50 jumped 64.90 points or 0.57 percent to 11,373. The Hang Seng in Hong Kong was down 130 points at the time of writing.
The Japanese yen fell sharply on the FX markets. The yen was trading at 129.47 at the last call around the Sydney close. The euro was not changed at 1.0725. The Swiss franc has softened to 0.9598.
The Australian dollar was little changed at 0.7185. The Dow Jones industrials fell 222.84 points or 0.67 percent over the night on Wall Street to close Tuesday at 32,990. The Nasdaq Composite declined by 49.74 points or 0.41 percent to 12,081. The Standard and Poor's 500 rose 26.09 points or 0.63 percent to 4,132.