Investing.com - Asian shares were mostly weaker on Wednesday in light regional trade, though Hong Kong gained as interest in property shares was evident.
Japan's Nikkei 225 eased 0.02%, while the S&P/ASX 200 dipped 0.07%. In Australia, the wage price index for the second quarter rose 0.5% as expected on quarter as well at the 1.9% increase on year seen.
As well, Australian biopharma CSL dropped 3.96% despite a ull-year underlying net profit after tax up 24% compared to the year before.
The Shanghai Composite fell 0.18% and Hong Kong Heng Seng index rose 0.58% as property shares found favor.
Overnight, U.S. stocks closed flat on Tuesday, as better-than-expected retail sales data offset a slump in retail and telecom stocks while U.S.-North Korea tensions eased, raising demand for risker assets.
Retail stocks capped gains on the broader market, as outlook on the sector turned negative, following å slump in shares of Home Depot (NYSE:HD) and Dick’s Sporting Goods.
Shares of Dick’s Sporting Goods Inc (NYSE:DKS) lost 23%, after the company reported earnings that missed on both the top and bottom line while Home Depot’s better-than-expected earnings failed to stem a selloff as shares of the home improvement retailer dropped 3%.
Economic data, however, showing an uptick in retail sales in July, lifted risk appetite as financials surged on the back of expectations that the rebound in U.S. consumer spending would boost economic growth in the third quarter.
The Commerce Department said on Tuesday that retail sales rose 0.6% last month. That was the largest gain in seven months, ending four-consecutive months of lower than expected growth.
The stronger-than-expected retail sales data, raised expectations the Federal Reserve would opt for a third rate hike later this year.
According to investing.com’s fed rate monitor tool, nearly 50% of traders expect the federal reserve to hike rates in December, up from just 34% on Monday.
Also adding to risk sentiment were reports from North Korean state media that leader Kim Jong Un had delayed a decision on firing missiles towards the U.S. pacific territory of Guam, suggesting that his earlier threats were rhetorical.
The Dow Jones Industrial Average closed higher at 21,998. The S&P 500 closed about 0.05% lower while the Nasdaq Composite closed at 6333, down 0.11%.