Asian Shares Mostly Higher Amid Tech Rally

(RTTNews) - Asian stocks ended mostly higher on Wednesday as a rebound in tech stocks helped offset hawkish comments from Federal Reserve officials.

Amid much uncertainty about the interest-rate outlook, investors braced for the release of key U.S. inflation reading, due later this week for directional cues.

Federal Reserve governor Michelle Bowman has warned of upside risks to the inflation outlook and reiterated the need to keep borrowing costs elevated "for some time".

Her counterpart Lisa Cook said that the timing of any rate adjustment will depend on how economic data evolve and what they imply for the economic outlook and balance of risks.

The dollar edged higher amid anxiety over upcoming French elections and escalating tensions in the Middle East.

Gold edged lower on dollar strength while oil prices rose despite industry data showing a surprise jump in U.S. stockpiles.

Chinese markets recovered from an early slide to end notably higher.

The benchmark Shanghai Composite index rose 0.76 percent to 2,972.53 while Hong Kong's Hang Seng index ended marginally higher at 18,089.93.

Japanese markets led regional gains as tech stocks tracked their U.S. peers higher. The Nikkei average closed up 1.26 percent at 39,667.07, after having reached its highest level since April 12 earlier.

The broader Topix index settled 0.56 percent higher at 2,802.95. The dollar traded near the 160-yen mark amid speculation the Bank of Japan could hike rates and outline major cuts to its bond-buying program in July.

Advantest, which counts Nvidia among its customers, soared 7 percent. Tokyo Electron rallied 3.6 percent and Screen Holdings added 2.1 percent.

Seoul stocks advanced, driven by gains in the tech sector. The Kospi average added 0.64 percent to close at 2,792.05.

Chipmaker SK Hynix surged 5.3 percent and Hanmi Semiconductor rallied 4 percent, buoyed by a rally in tech stocks on Wall Street overnight.

Australian markets fell notably after data showed consumer inflation in the country rose to a six-month high in May, increasing the odds of an RBA rate hike in August.

The benchmark S&P/ASX 200 dropped 0.71 percent to 7,783, dragged down by mining and financial stocks. The broader All Ordinaries index finished 0.67 percent lower at 8,022.90.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rallied 1.01 percent to 11,835.02.

U.S. stocks closed mixed overnight as a measure of consumer confidence eased in June on a weaker outlook for business conditions, the job market and incomes.

U.S. house prices rose less than expected in April after stagnating in the previous month, while the Chicago Fed's measure of overall economic activity and related inflationary pressure in the country rose in May for the first time in three months, separate set of data revealed.

The Dow dipped 0.8 percent while the S&P 500 rose 0.4 percent and the tech-heavy Nasdaq Composite rallied 1.3 percent to snap their three-day losing streak.