TOKYO — Asian shares were mostly lower Wednesday, as investors got jittery over global risks after Poland said a Russian-made missile killed two people there.
Benchmarks fell in Sydney, Seoul, Hong Kong and Shanghai, while shares in Tokyo rebounded to finish slightly higher.
Details were unclear, including who fired the missile. Three U.S. officials said preliminary assessments suggested the missile was fired by Ukrainian forces at an incoming Russian missile amid a crushing salvo against Ukraine’s electrical infrastructure Tuesday.
The Polish government said it was investigating. President Joe Biden, in Indonesia for the Group of 20 summit, promised “full U.S support for and assistance with Poland’s investigation.”
Japan’s benchmark Nikkei 225 rose 0.1% to finish at 28,028.30. Australia’s S&P/ASX 200 slipped 0.3% to 7,122.20. South Korea’s Kospi shed 0.2% to 2,475.09. Hong Kong’s Hang Seng fell 1.0% to 18,155.32, while the Shanghai Composite dipped 0.4% to 3,120.53.
“Asian equities were defensive on Wednesday, with geopolitical tensions driving price action,” said Anderson Alves at ActivTrades.
“Traders are waiting for further developments on the geopolitical front for direction for risk assets. Any signal of escalation in the volatile situation could see a reaction across markets,” he said.
On Wall Street, stocks finished higher following more signs the nation’s punishingly high inflation may be falling off faster than expected. Stocks momentarily fell on the missile reports, but rebounded.
The S&P 500 climbed 0.9%, or 34.48 points, to 3,991.73. The Dow Jones Industrial Average veered from a gain to a loss, before closing at 33,592.92, up 56.22 points, or 0.2%. The Nasdaq composite led the market with a gain of 1.4%, or 162.19 points, to close at 11,358.41.
When Wall Street opened for trading, the overall mood was ebullience as stocks bounced following the latest data suggesting inflation continues to cool from its summertime peak. A meeting between the presidents of the world’s two largest economies also raised hopes for an easing of U.S.-Chinese tension after analysts called it better than expected.
The S&P 500 touched its highest level in two months, while Treasury yields eased on hopes a slowdown in inflation could mean the Federal Reserve’s bitter, economy-crunching medicine for it could taper as well.
“Inflation is still top of mind and market moving,” said Nate Thooft, senior portfolio manager at…
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