Asian shares mostly higher ahead of Fed chair’s key speech

TOKYO — Asian shares were mostly higher on Wednesday, ahead of a closely watched speech by the Federal Reserve chief that may give clues about future interest rate hikes.

Investors were also eyeing developments in China, where protests have erupted over the “zero-COVID” strategy that has confined millions of people to their homes, sometimes for months.

Shares fell in Tokyo and Shanghai but were higher in Sydney, Seoul, Hong Kong and other regional markets. Oil prices rose.

China has eased some controls after demonstrations in at least eight mainland cities and Hong Kong. It’s unclear if protests will start up again after authorities detained an unknown number of people and stepped up surveillance.

Renewed restrictions on businesses and other activity have hit manufacturing, with an official survey announced Wednesday showing the purchasing managers index falling to 48.0 in November from 49.2 the month before. The index is on a scale of 0 to 100 where readings 50 and above show expansion.

“A further fall in the new orders and new export orders indices suggests this was largely driven by weakening domestic and foreign demand,” Capital Economics said in a report. “Todays surveys suggest that intensified virus disruption has delivered another blow to the economy this month.”

Japan’s benchmark Nikkei 225 lost 0.2% in afternoon trading to 27,968.99 and the Shanghai Composite index fell less than 0.2% to 3,144.06. Australia’s S&P/ASX 200 rose 0.4% to 7,284.20. South Korea’s Kospi rose 1.6% to 2,472.53. Hong Kong’s Hang Seng added 0.6% to 18,316.65.

“Due to a more reflective approach to the recent zero-COVID measures, Chinese stocks have taken substantial leaps and bounds this week. However, that optimism is giving way to hawkish contemplation as traders twiddle their thumbs awaiting a speech from Federal Reserve Chair Jerome Powell later Wednesday,” Stephen Innes, a managing partner at SPI Asset Management, said in a report.

Investors have been hoping that the Fed could ease up on its rate increases and are closely watching the latest data on inflation, consumer spending and the employment market. They’ll be looking for any signs of a shift in policy when Powell speaks at the Brookings Institution about the outlook for the U.S. economy and the labor market on Wednesday.

The Fed’s benchmark rate currently stands at 3.75% to 4%, up from close to zero in March.

Wall Street capped an unsteady day of trading with an uneven finish, as gains by energy…