The dollar tumbled and Asian stocks rose to one-year highs on Wednesday after surprisingly weak U.S. services sector activity dashed already slim chances of an interest rate hike by the Federal Reserve as early as this month.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS rose 0.4 percent, extending gains of 2.7 percent over the last two days, to claim a level last seen in July last year.
Japanese stocks fell on Wednesday after exporters and other cyclical shares took a hit on a strengthening yen as weak U.S. service sector activity reduced the chances of a near-term interest rate increase by the U.S. Federal Reserve.
The Nikkei ended 0.4 percent lower at 17,012.44.
China stocks were little changed on Wednesday, with falls in consumer and healthcare shares offset by gains in infrastructure and raw materials firms, as Beijing vowed to step up fiscal policy efforts to support the economy.
China's State Council, or cabinet, also said it would encourage policy banks to extend more credit and reaffirmed the government's commitment to reducing overcapacity, in a notice published late on Tuesday.
The CSI300 index fell 0.1 percent, to 3,340.82 points at the end of the morning session, while the Shanghai Composite Index gained0.1 percent, to 3,092.41 points.
Hong Kong's benchmark share index slipped on Wednesday, snapping a four-day winning streak, but an index tracking Hong Kong-listed Chinese shares continued to advance as more money flowed in from mainland investors.
The Hang Seng index ended down 0.2 percent at 23,741.81, while the China Enterprises Index gained 0.3 percent to 9,970.19, rising for a fifth straight day.
Reference: Bloomberg, Reuters
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