Asian stocks mixed after Fed says ready to act on inflation

BEIJING (AP) — Asian stock markets were mixed Thursday after Federal Reserve officials indicated they were ready to raise interest rates sooner than expected if needed to cool inflation.

Shanghai and Seoul declined while Tokyo, Hong Kong and Sydney advanced.

Wall Street's benchmark S&P 500 index gained 0.2% before markets closed for a U.S. holiday. They reopen Friday for a shortened trading session.

Fed officials at their October policy meeting said they “would not hesitate” to respond to inflation, according to notes released Wednesday. They foresaw the possibility of raising rates “sooner than participants currently anticipated."

That fueled investor fears the Fed and other central banks might feel pressure to withdraw economic stimulus that has been boosting stock prices. Fed officials earlier indicated they might raise rates late next year.

Higher prices combined with stronger U.S. hiring suggest the attitude at the next Fed meeting might be “unabashedly more hawkish,” said Tan Boon Heng of Mizuho Bank in a report.

The Shanghai Composite Index fell 0.1% to 3,589.18 while the Nikkei 225 in Tokyo gained 0.7% to 29,515.72. The Hang Seng in Hong Kong advanced 0.1% to 24,714.83.

The Kospi in Seoul lost 0.4% to 2,981.12 after the Korean central bank raised its policy interest rate by 0.25 percentage points to 1% in line with expectations.

Sydney's S&P-ASX 200 was less than 0.1% higher at 7,403.60 and India's Sensex opened down less than 0.1% at 58,337.48. New Zealand and Jakarta advanced while Singapore declined. Bangkok was unchanged.

On Wall Street, the S&P 500 advanced to 4,701.46. Gains in technology, real estate and energy stocks outweighed a slide in banks and materials companies.

The Dow Jones Industrial Average slipped less than 0.1% to 35,804.38....