-- Most Asian stocks rose slightly on Wednesday as markets weighed worsening economic conditions in the region against the prospect of a pause in the Federal Reserve’s rate hike cycle this month.

But China’s and indexes lagged their peers, reversing early gains after data showed the country’s hit its lowest level since April 2022, driven by a sharp drop in . 

A steady decline in also raised concerns over just how sustainable an economic rebound in the country will remain this year, as it grapples with slowing overseas demand for Chinese goods. 

But on the other hand, technology-heavy indexes were key outperformers for the day, benefiting from continued bets that the Fed will pause its rate hike cycle next week. Hong Kong’s index added 1.1%, while the index rose 0.7%, with both bourses buoyed by heavyweight technology stocks. South Korea’s added 0.3%. 

This trend also spurred some gains in broader Asian markets, with India’s and indexes rising 0.3% each in early trade. Focus in India is also on a on Thursday.

Still, fears of worsening economic conditions across the globe kept sentiment towards risk-heavy Asian stocks largely muted. Even if the , markets will still have to contend with rates remaining higher for longer, as well as a potential recession in large portions of the globe. 

Australia’s lagged its peers for most part, rising 0.2% after data showed that the country’s of 2023, amid pressure from high inflation and interest rates.

Major Australian bank stocks were the chief support to the ASX 200, following an interest rate hike by the Reserve Bank on Tuesday.

Japan’s and were the worst performers for the day, down 0.7% and 0.5%, respectively, as they saw a heavy dose of profit taking after racing to 33-year highs in recent sessions.

Analysts questioned whether a Japanese stock rally had any legs left, given that markets have largely priced in the factors that powered it- chiefly a dovish Bank of Japan and a strong quarterly earnings season.

Markets are now awaiting more cues on the Japanese economy from a revised reading, due on Thursday.