FX.co ★ Asian Shares End On Muted Note Amid Interest Rate Uncertainty

Asian stocks remained relatively unchanged on Wednesday, as investors paused to consider the impact of a potential Israel-Hamas ceasefire and a rally in China's stock market. The dollar saw a resurgence after Minneapolis Federal Reserve President Neel Kashkari suggested that interest rates are likely to remain steady for some time.

The rise in the dollar affected the gold market, while oil prices dropped by over 1% in Asia after the American Petroleum Institute reported increased stockpiles. Chinese markets dipped as investors took profits following a six-month high, fueled by positive economic news and optimism over potential stimulus measures designed to support the country's flagging property market.

The Shanghai Composite experienced a minor decline, dropping 0.61% to 3,128.48 in advance of April's trade figures. Meanwhile, Hong Kong's Hang Seng index decreased by 0.90% to 18,313.86, falling from an eight-month high.

Japanese markets saw the most significant regional losses after a substantial rise to a three-week peak during the previous session. The Nikkei average dropped by 1.63% to 38,202.37, while the broader Topix index fell by 1.45% to 2,706.43. Notably, Mitsubishi Heavy Industries and Ricoh experienced the most significant losses of 7.3% and 6.2% respectively.

There were small gains in Seoul with the Kospi average tentatively rising by 0.39% to 2,745.05. Australia's S&P ASX 200 and the broader All Ordinaries index both saw marginal increases, with both confirming investor's cautious reaction to the central bank's easing monetary policy stance.

Lithium stocks also rose, with Vulcan Energy operating above 10% and Liontown Resources adding 3.9%. Meanwhile, New Zealand's S&P NZX-50 slipped 0.15% to 11,782.89.

In the US, stocks lost early gains as investors held out for clearer indications of when the Federal Reserve may begin to cut interest rates. The Dow capped off the session with a slight increase, extending its upward movement for the fifth consecutive next session and reaching a one-month high. Meanwhile, the S&P 500 managed a marginal rise, whereas the NASDAQ Composite fell by 0.1%.