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(Bloomberg) -- Asian stocks traded mixed on Wednesday after US shares fell and a rally in oil reignited concerns over inflation. (Bloomberg) -- Asian stocks traded mixed on Wednesday after US shares fell and a rally in oil reignited concerns over inflation. Benchmark indexes fell in Hong Kong and mainland China, but rose in Japan. Energy shares rose across the region on the back of soaring oil prices. US equities edged lower after the S&P 500 ended below 4,500 Tuesday while an index of small caps slid about 2% and a gauge of homebuilders sank 5.5%. In currencies, the yen erased earlier advances and set a fresh 10-month low against the dollar Wednesday morning after Japan’s top currency official Masato Kanda said he wouldn’t rule out any options if currency moves continue. The Japanese currency is already trading at levels that saw Japan intervene in the market last year. Oil held near the highest since November. Its recent gains pose a headwind for much of Asia and put upward pressure on inflation, which in turn keeps policy interest rates high and drags on economic growth. Brent stayed past above $90 a barrel after breaching the level Tuesday as the largest OPEC+ producers extended their supply cuts to year-end. Investors in Asia will continue to monitor other measures by the Chinese government to stem the economic slide. The central bank moved Wednesday with another strongest daily yuan fixing on record. Still, the currency extended its drop against the dollar into a third day. “At this point in time, we’re looking more at a 2024 outlook for some of the policies to come through for the real estate space to basically sort of stabilized,” Lorraine Tan, director of equity research at Morningstar Investment Adviser Singapore Pte Ltd., said on China’s recovery on Bloomberg Television. “Until then, it’s going to be very sluggish.” Treasuries steadied after falling Tuesday, with yields pushing up across the curve as at least 40 businesses tapped high-grade markets around the world. The surge in corporate debt issuance followed a seasonal slowdown and the recent rise in Treasury rates. About half of the corporate deals — or over $36 billion of new bonds — were sold in the US. The dollar traded steady Wednesday after rising the previous session as yields increased. Stocks in Australia stocks were little changed while the Aussie dollar held onto a decline following second-quarter gross domestic product data that came in line with estimates. Traders will also be monitoring consumer price index figures in Taiwan and comments made by Bank of Japan board member Hajime Takata. More broadly, they are also looking to this month’s key economic data from the US and clues as to the Federal Reserve’s next rate decision. Careful Move Fed Governor Christopher Waller said policymakers can afford to “proceed carefully” with tightening given recent data showing inflation continuing to ease. “There is nothing that is saying we need to do anything imminent anytime soon,” Waller told CNBC. Meantime, Fed Bank of Cleveland President Loretta Mester said the central bank may need to raise rates “a bit higher,” but stopped short of saying what officials should do at their next meeting. “This higher-for-longer interest rate environment is going to last,” Eric Lynch, managing director at Scharf Investments, said on Bloomberg Television. “The only way to kind of crack this core inflation above 4%, and now we’ve got oil coming back, is to continue slowing down the economy.” JPMorgan Chase & Co.’s Marko Kolanovic reiterated Tuesday that investors should fade the artificial-intelligence induced stock-market rally, arguing that he would turn more optimistic on equities if interest rates begin falling globally in the near term. Meantime, Morgan Stanley’s Michael Wilson said US equity investors are in for disappointment as economic growth is set to be weaker than expected this year. Elsewhere, gold was little changed after declining the most in more than a month in the previous session. WATCH: Lorraine Tan, director of Asia equity research at Morningstar, discusses the opportunities she sees in China and her views on the economy.Source: Bloomberg Key events this week: Eurozone retail sales, Wednesday Germany factory orders, Wednesday US trade, ISM services index, Wednesday Canada rate decision, Wednesday Bank of England Governor Andrew Bailey testifies to the UK parliament’s Treasury Select Committee, Wednesday Federal Reserve issues Beige Book economic survey, Wednesday Boston Fed President Susan Collins speaks, Wednesday Dallas Fed President Lorie Logan speaks, Wednesday China trade, forex reserves, Thursday Eurozone GDP, Thursday US initial jobless claims, Thursday Bank of Canada Governor Tiff Macklem to speak on the Economic Progress Report, Thursday Atlanta Fed President Raphael Bostic speaks, Thursday New York Fed President John Williams participates in moderated discussion at the Bloomberg Market Forum, Thursday Japan GDP, Friday Germany CPI, Friday US wholesale inventories, consumer credit, Friday Some of the main moves in markets: Stocks S&P 500 futures fell 0.1% as of 11:00 a.m. Tokyo time. The S&P 500 fell 0.4% Nasdaq 100 futures fell 0.2%. The Nasdaq 100 rose 0.1% Japan’s Topix rose 0.4% Australia’s S&P/ASX 200 fell 0.5% Hong Kong’s Hang Seng fell 1% The Shanghai Composite fell 0.4% Euro Stoxx 50 futures fell 0.2% Currencies The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.0715 The Japanese yen was little changed at 147.67 per dollar The offshore yuan fell 0.2% to 7.3233 per dollar The Australian dollar fell 0.3% to $0.6360 Cryptocurrencies Bitcoin rose 0.3% to $25,771.69 Ether rose 0.2% to $1,632.84 Bonds The yield on 10-year Treasuries was little changed at 4.26% Japan’s 10-year yield was little changed at 0.660% Australia’s 10-year yield advanced four basis points to 4.17% Commodities West Texas Intermediate crude was little changed Spot gold was little changed This story was produced with the assistance of Bloomberg Automation. --With assistance from Brett Miller and Jake Lloyd-Smith. 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