Asia markets mixed after Fed officials hint at higher rates

Asia-Pacific markets were mixed on Thursday after the U.S. Federal Reserve’s July minutes showed inflation concerns lingered, which could lead to more rate hikes.

“With inflation still well above the Committee’s longer-run goal and the labor market remaining tight, most participants continued to see significant upside risks to inflation, which could require further tightening of monetary policy,” the meeting summary stated.

The Federal Funds rate currently stands at 5.25% to 5.5%, the highest in 22 years.

Hong Kong’s Hang Seng index was trading near the flatline, while on mainland China, the CSI 300 inched up 0.33% to 3,831.1.

In Australia, the S&P/ASX 200 was down 0.68% to end at 7,146, its lowest level in over a month, as the country’s unemployment rate rose slightly to 3.7% in July.

Japan’s Nikkei 225 slid 0.44% to end at 31,626, its lowest level since June and the Topix closed 0.34% lower at 2,253.06. The country saw its trade balance slip into a deficit in July from a surplus in June.

South Korea’ Kospi was down 0.23% to end at 2,519.85 and record its fifth straight day of losses, but the Kosdaq bucked the wider trend and gained 0.88% to 886.04.

Overnight in the U.S., all three major indexes notched a second straight losing session as the Dow Jones Industrial Average dropped 0.52%, while the S&P 500 dipped 0.76%. Meanwhile, the Nasdaq Composite saw the largest loss, falling 1.15%.

— CNBC’s Hakyung Kim and Alex Harring contributed to this report