Asian markets mixed as traders assess latest rally, eye data and earnings

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Markets were mixed in Asia on Wednesday following a negative day on Wall Street as observers warn the latest equities rally may have run out of steam, with investors looking for fresh catalysts to kickstart buying. All three main indexes on Wall Street ended in the red, having spent most of the day on the positive side of the line.

Markets were mixed in Asia on Wednesday following a negative day on Wall Street as observers warn the latest equities rally may have run out of steam, with investors looking for fresh catalysts to kickstart buying.

The tepid performance across the region so far this week comes ahead of key US data releases, including the Federal Reserve's preferred gauge of inflation, and the looming corporate earnings season. While the central bank last week indicated it would cut interest rates three times this year, some investors fear that recent indicators and comments from decision-makers have put that in doubt.Jobless claims and economic growth readings are due over the next few days, before the crucial personal consumption expenditures index on Friday.

"With market valuations at lofty levels, there's little room for corporate earnings performance to falter or for the Federal Reserve to deviate from its anticipated course of three rate cuts," said Stephen Innes at SPI Asset Management.All three main indexes on Wall Street ended in the red, having spent most of the day on the positive side of the line.

However, he did say he wanted to gradually lift borrowing costs as the bank moves away from its years-long ultra-loose policy.Hong Kong - Hang Seng Index: DOWN 0.4 percent at 16,556.31West Texas Intermediate: DOWN 0.9 percent at $80.91 per barrel

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