Asian Stock Market: Trades mixed as investors digest the data

Asian stock markets trade mixed on Wednesday as investors digest better-than-expected results from Wall Street. The risk appetite improves on the outperformance of US banks in the earnings seasons, which boosts Wall Street benchmarks to reclaim the yearly top. 

In Japan, the NIKKEI posts gains of 0.73%. Bank of Japan (BOJ) Governor Kazuo Ueda noted on Tuesday that there was still some way to go before reaching the 2% inflation target, per Reuters.

Market participants have now shifted their focus to the Bank of Japan's (BoJ) interest rate decision, which will be announced next week. BoJ Governor Kazuo Ueda is expected to maintain a dovish policy stance in order to keep inflation steady at around 2%.

Hong Kong’s Hang Seng Index declines 1.27% on Wednesday, while the Shanghai SE Composite Index down 0.25%.

The Chinese growth number on Monday raised concern about an economic slowdown in the world's second-largest oil consumer. However, China’s Commerce Ministry stated on Tuesday that a series of measures will help boost the consumption of household consumer goods and services. This, in turn, supports further upside in the oil price.

Looking forward, investors will focus on the People’s Bank of China Interest Rate Decision and the Japanese National Consumer Price Index YoY on Thursday. Also, US Housing Starts and Unemployment Claims might influence the USD dynamic and hint at a sooner end to the rate hike cycle. This, in turn, underpins riskier assets like Gold, equities, the AUDUSD, etc.