EQUITIES

Asia-Pacific stocks struggled for direction in Thursday trade, as investors digested the U.S. FOMC meeting minutes regarding rate hikes.

Mainland Chinese stocks rose as the Shanghai Composite added 0.65% while the Hong Kong’s Hang Seng index traded 0.13% lower.

In Japan, the Nikkei 225 climbed 0.15% while over in Singapore, the Straits Times index edged 0.81% higher. Seoul's KOSPI rose 0.17% after the central bank rate announcement came in line with expectations.

The S&P/ASX 200 in Australia meanwhile edged 0.41% lower.

The falls in Asia contrast with a more upbeat mood on overnight Wall Street, with the S&P 500 climbing around 0.95% to 3,978.73, the Dow Jones Industrial Average advanced 0.6%, to 32,120.28, and the tech-heavy Nasdaq Composite jumped 1.51% to 11,434.74.

OIL

Oil prices rose slightly on Thursday, extending a cautious rally this week on signs of tight supply and the prospect of an EU embargo on Russian oil, though Hungary remains a stumbling block to the unanimous support needed for EU sanctions.

The rise however, were capped by strict COVID-19 lockdowns increasing concerns about falling fuel demand in China, the world's biggest oil importer, and worries about inflation leading to slower global growth.

Brent crude was flat to $114.50 a barrel, while the U.S. WTI crude futures climbed 0.15% to $110.91 a barrel.

CURRENCIES

The dollar index was little changed at 102.075, consolidating around that level after a short-lived bounce immediately after the minutes on Wednesday.

Moves in U.S. Treasury yields were also muted. The 10-year yield edged up to 2.770% from a close of 2.747%, and the policy-sensitive two-year yield was flat at 2.506%.

South Korea's central bank raised interest rates for a second consecutive meeting as it grapples with consumer inflation at 13-year highs.

GOLD

Gold prices slipped on Thursday as the dollar hold ground, though uncertainty over the trajectory of inflation supported safe-haven bullion's outlook.

Spot gold eased 0.40% to $1,859.60 per ounce, and U.S. gold futures was flat to $1,846.90.

ECONOMIC OUTLOOK

Asian share markets mixed on Thursday, as markets digest the latest signals from the U.S. Federal Reserve regarding rate hikes. Sentiment in equity markets remains fragile after weeks of volatile trade as more global central banks continue on the path of tightening.

Minutes from the Federal Reserve's early May meeting showed a majority of officials backing the 50-bps interest rate hikes in June and July, to quell the recent inflationary pressures.