Asian benchmarks mixed as markets await Fed rate moves

TOKYO (AP) — Asian shares were mixed Wednesday while Chinese benchmarks surged ahead of a decision by the U.S. Federal Reserve on an interest rate increase to curb inflation.

Oil prices rose more than $1 a barrel and U.S. futures were also higher. Stocks ended lower on Wall Street after an unexpectedly strong report on the job market raised concerns the Fed will keep the pressure on inflation with big rate increases.

Chinese shares extended gains after strong advances a day earlier driven by speculation the government might be preparing to gradually relax stringent COVID-19 restrictions. Since that was not followed by any official confirmation, the enthusiasm could quickly fade.

“The power of social media and retail investors was evident after stories circled on China’s zero COVID policy and if Beijing is preparing to phase it out," Stephen Innes of SPI Asset Management said in a commentary.

“Despite new lockdowns being announced ... a China reopening is the biggest ticket in town, and it’s better to show up early rather than late to the reopening party," he said.

B ullish talk by Chinese regulators who addressed a conference of global financiers in Hong Kong also lifted sentiment.

Fang Xinghai, vice chairman of the China Securities Regulatory Commission, urged those attending the meeting to visit China to understand what is happening in the country and urged them not to “bet against” China and Hong Kong. He was among several senior Chinese officials who, speaking in prerecorded video addresses, downplayed risks to the economy due partly to a slump in the real estate sector.

Hong Kong's Hang Seng jumped 2.6% to 15,859.39, while the Shanghai Composite index added 1.7% to 3,018.78.

Japan’s benchmark Nikkei 225 declined 0.1% to 27,643.18. Australia’s S&P/ASX 200...