Asian stock markets gain ahead of Fed update

BEIJING (AP) — Asian stock markets rose Wednesday ahead of the release of minutes from a Federal Reserve meeting that investors hope might show the U.S. central bank is moderating plans for more interest rate hikes to cool inflation.

Shanghai, Hong Kong, Seoul and Sydney advanced. Tokyo retreated. Oil prices were little-changed.

Wall Street fell Tuesday in the year's first trading day after recording its biggest annual decline in 14 years in 2022.

Traders worry the Fed and other central banks might be willing to push the world into recession to extinguish inflation that is at multi-decade highs. They hope minutes from the Fed's December meeting might show policymakers are reducing or delaying planned rate hikes due to signs economic activity is slowing.

“While the Fed expects to keep rates higher for longer, markets continue to push back, betting on easier policy,” said Rubeela Farooqi and John Silvia of High-Frequency Economics in a report. However, they said, “we do not think a pivot to rate cuts is likely this year.”

The Shanghai Composite Index gained 0.3% to 3,126.51 while the Nikkei 225 in Tokyo sank 1.3% to 25,764.11. The Hang Seng in Hong Kong rose 2.3% to 20,608.21.

The Kospi in Seoul advanced 1.7% to 22,57.15 and Sydney's S&P-ASX 200 was 1.5% higher at 7,052.30. New Zealand advanced while Southeast Asian markets declined.

On Wall Street, the benchmark S&P 500 index lost 0.4% to 3,824.14.

The S&P 500 shed a 1% gain and finished 0.4% lower. The Dow Jones Industrial Average slipped less than 0.1% to 33,136.37. The Nasdaq composite dropped 0.8% to 10,386.98.

Technology stocks were among the biggest weights on the market. Apple fell 3.7%, leaving its market value below $2 trillion for the first time since March 8, 2021. Shares in the iPhone maker...