Chinese inflation data, The Fed, currencies in the crosshairs

Asian markets were mixed on Wednesday as investors waited for comments from US Federal Reserve Chairman Jerome Powell for clues about the central bank's next interest rate move.

In Japan, the Nikkei 225 fell 0.17% in early trading, while the Topix lost 0.55%.

Kospi, from South Korea, grew by 0.59% as chip maker SK Hynix jumped more than 3%.

In Australia, the S & P / ASX 200 index gained 0.56% as most sectors rose.

Investors will pay attention to the publication of Chinese inflation data, which should come out at 9.30 HK / SIN on Wednesday.

Overnight on Wall Street, the Dow Jones Industrial Average plunged 22.65 points to close at 26,783.49 points. In contrast, the Nasdaq Composite and the S & P 500 ended their trading day higher. Nasdaq added 0.5% to 8,141.73, while the S & P 500 gained 0.1% to 2,979.63.

Investors will see if the Fed will cut rates at its next monetary meeting. Fed Chairman Powell is scheduled to testify Wednesday before the House's Financial Services Committee. This comes right after a stronger-than-expected employment report has raised questions about the central bank's next interest rate move.

"We hope that Powell will reaffirm both the Fed's belief that the need for a more accommodative monetary policy has been strengthened and that its commitment to US economic expansion is not faltering. not, "said Joseph Capurso, currency strategist at the Commonwealth Bank of Australia. .

On the US-China trade front, high-level trade talks took place between Beijing and Washington earlier this week, according to a US official, who said "both parties will pursue these negotiations as appropriate."

The US dollar index, which compares the greenback to a basket of peers, stood at 97,538, after rising from levels below 97.2 earlier this week.

The Japanese yen traded at 108.94 against a dollar after recording levels lower at 108.5 earlier in the week, while the Australian dollar changed hands at 0.6926 dollar after going from more than $ 0.695 yesterday.

Oil prices rose sharply in the morning hours of trading in Asia. Brent futures rose 1.01% to $ 64.81 per barrel, while futures contracts jumped 1.45% to $ 58.67 a barrel.

– Fred Imbert of CNBC contributed to this report.