Asian Stock Market: Mixed trading amid the fear of higher US rate, China's economic woes

• Asian stock markets trade mixed as investors fear the US higher for longer interest rate.
• The US-China relationship, further Chinese stimulus measures remain in focus. 
• Japan's industrial activity contracted for the third consecutive month in August.
• Market players will focus on the US S&P Global PMI data due on Wednesday.

Asia stock markets trade mixed on Wednesday amid the cautious mood in the market. Asian equities remain under pressure amid the fear of higher interest rates in the US and elevated US yields. Investors await the US PMI data due later on Wednesday for the fresh impetus.

At press time, China’s Shanghai declines 0.55% to 3,103, the Shenzhen Component Index falls 1.11% to 10,259, and Hong Kong’s Hang Sang gains 0.38% to 17,854. India’s NIFTY 50 is down 0.1%, South Korea’s Kospi drops 0.55%, Japan’s Nikkei is up 0.17% and Taiwan's Weighted Index gains 0.73%

The US Commerce Department’s statement reported late Tuesday that US Commerce Secretary Gina Raimondo met the Chinese ambassador Xie Feng, and had a productive discussion before her departure to China, according to Reuters. The headline surrounding the US-China relationship remains in focus and the renewed tension between the world's two largest economies might exert pressure on the regional market.

China's economy has lost steam as a result of a worsening property slump and slow consumer spending, prompting calls for further stimulus measures by the government. Chinese authorities, however, are hesitant to increase the country's borrowing needs. This, in turn, raise the concern about the Chinese economic slowdown and the spillover effect to other countries.

In Japan, the latest data showed that Japan's industrial activity contracted for the third consecutive month in August. The preliminary data from Jibun Bank revealed that Japan's manufacturing PMI for August increased to 49.7 from 49.6. The result was lower than the 49.5 expected. While Service PMI rose from 53.8 to 54.3 over the same period.

On the Indian front, NIFTY 50 is one of the top performers among emerging markets. However, the fears over higher US interest rates and China's sluggish economic recovery have halted the rally.

Market participants will closely watch US S&P Global PMI data due later in the North American session. Later in the week, attention will turn to the Jackson Hole annual symposium on Thursday and Fed Chair Powell's speech on Friday. The speech could provide insights into economic conditions and hints as to whether inflation is under control or whether additional interest rate hikes are required to combat inflation.