TOKYO: Asian shares were mixed on Wednesday after Wall Street indexes were little changed as investors awaited earnings reports from key international companies.

Shares rose in Seoul and Tokyo while those in Sydney and Mumbai declined. Shanghai and Hong Kong markets were closed on the occasion of Lunar New Year.

Australia's higher-than-expected inflation number raised hopes of another interest rate hike. In December, consumer prices rose by 8.4%, exceeding forecasts of 7.6%.

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It also set expectations for another 25 basis-point hike from the Reserve Bank of Australia in February, according to Yep Jun Rong, market analyst at IG.

The benchmark Nikkei 225 index for Japan rose 0.4% to 27,395.01 in afternoon trade. The S&P/ASX 200 in Australia fell 0.3% to 7,468.30, while the Kospi in South Korea was up 1.4% at 2,428.62. Mumbai's Sensex fell 1.1%.

The S&P 500 fell less than 0.1% to 4,016.95 on Wall Street, marking its second loss in three trading days. The Nasdaq Composite declined 0.3% to 11,334.27 while the Dow Jones Industrial Average rose 0.3% to 33,733.96. Smaller-company stocks also declined, with the Russell 2000 falling 0.3% to close at 1,885.61 in the process.

As investors try to understand how inflation is affecting the economy, the potential for a recession, and whether the Federal Reserve may taper off its aggressive interest rate hikes, stocks have been volatile.

The most recent round of earnings shows that businesses are still having trouble dealing with how inflation is affecting supply chains and consumers.

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3M, the maker of Post-It notes and industrial coatings, experienced the biggest drop among S&P 500 stocks, falling 6.2% after announcing job cuts and reporting weak fourth-quarter earnings.

It is the most recent company to announce layoffs as consumers grapple with inflation and growing concerns about a possible recession and further spending cuts.

After releasing disappointing earnings and revenue, Union Pacific was down 3.3%.

Software and technology giant Microsoft surged 4% in after-hours trading, after releasing earnings that beat Wall Street's expectations. It lost 0.2% in regular trading for the close.

The New York Stock Exchange temporarily suspended trading due to an apparent technical problem after stock prices of more than a dozen companies swung wildly just before the market opened.

At the start of trading, shares of Morgan Stanley, Wells Fargo, AT&T and other companies made a sudden move, forcing trading to be suspended. There was a change in prices after the resumption of trading. After all systems were back up and running, the NYSE announced that it was looking into the "reported issues".

The market is oscillating between optimism and caution as investors wait to see whether the Fed will change its approach to combat inflation. The central bank raised its benchmark overnight rate from practically zero to 4.25% to 4.5% early last year.

On February 1, the Federal Reserve will announce its next rate hike. Traders expect a quarter-point increase, which would slow the pace of the central bank's rate hikes.

How long will the Fed keep interest rates around 5% where the markets and the Fed are currently engaged in a fairly violent argument. said Scott Ladner, Chief Investment Officer, Horizon Investments.

Yields on long term bonds have come down. The yield on the 10-year Treasury fell to 3.46% from 3.52% late Monday, impacting mortgage rates.

This week, Wall Street will receive some economic updates that may shed more light on the effects of inflation.

The fourth quarter GDP figures will be made public by the government on Thursday. Growth of less than 1%, down from 1.9% in the third quarter, and a decline in the first half of 2022 are the predictions made by economists. On Friday, investors will learn more about personal income and expenses.

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On the New York Mercantile Exchange, benchmark US crude rose 26 cents to $80.39 a barrel in electronic trading. Its value fell 1.8% overnight. Brent crude, the benchmark for international prices, rose 36 cents to $86.49 a barrel.

The US dollar rose slightly in currency trade, rising to 130.33 Japanese yen from 130.18 yen. The euro moved up from $1.0889 to $1.0905.