Asian stocks were mixed following a strong start in some markets, which took the lead from Wall Street where traders were cheered by brisk US retail sales data
The US Federal Reserve's tightening of monetary policy to contain surging inflation has sent jolts through global markets, deepening the apprehensions of investors already roiled by China's Covid-19 lockdowns and the Russian invasion of Ukraine.
Tokyo, Sydney and Singapore stayed up in Wednesday's trade thanks to the bounce in New York, while Hong Kong and Shanghai fluctuated between red and green.
The US consumer data added to the boost from China earlier this week, where authorities said Shanghai -- the economic engine of the world's second-largest economy -- will "gradually reopen" businesses.
Most of the city's 25 million people were placed under lockdown for weeks as authorities battled a major virus outbreak.
Millions were still confined to their homes Wednesday as confusion abounded over official statements about achieving zero Covid cases.
Central banks around the world are concerned about skyrocketing prices, and on Tuesday, Federal Reserve Chair Jerome Powell said there needs to be "clear" evidence that inflation is coming down before efforts to cool the economy can be pulled back.
He acknowledged that it may be a "bumpy" ride that would inflict some pain.
His comments were in line with market expectations, said Stephen Innes of SPI Asset Management.
"Still, the debate is evolving among the active trading community from recessionary capitulation mode to one that is short and not a particularly deep recession," he said.
"So while this is a tacit acceptance that the Fed is in catch-up mode and is prepared to constrain demand to get inflation down, they are unlikely to do it in a jackhammer fashion."
