,MSCI's broadest index of Asia-Pacific shares outside Japan fell 1%, but was still up 1.39% on the more than five-week low it hit on Monday. Tokyo's Nikkei .N225 gave up early gains and was flat.环球UG官网（www.ugbet.us）开放环球UG代理登录网址、会员登录网址、环球UG会员注册、环球UG代理开户申请、环球UG电脑客户端、环球UG手机版下载等业务。
TOKYO: Asian stocks slipped in volatile trade on Wednesday, failing to extend Wall Street's rally as persistent worries about interest rates and inflation remained a key focus for investors, while the Japanese yen hit a fresh 24-year low against the dollar.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 1%, but was still up 1.39% on the more than five-week low it hit on Monday. Tokyo's Nikkei .N225 gave up early gains and was flat.
Investors are continuing to assess how worried they need to be about central banks pushing the world economy into recession as they attempt to curtail red hot inflation with interest rate increases.
The main U.S. share benchmarks rose 2% overnight on the possibility the economic outlook might not be as dire as thought during trade last week when the S&P 500 .SPX logged its biggest weekly percentage decline since March 2020. .N
"I think that this recent post-holiday bear market rally is a reflection of the uncertainty that investors have regarding whether we have seen the peak of inflation and Fed hawkishness or not – I think we're close," said Invesco global market strategist for Asia Pacific David Chao.
"Even though I suspect global equity markets could end higher at the end of the year than where we are today, it's conceivable to expect continued market volatility until it becomes clear that the Fed is not going to force the U.S. economy into contraction in order to tamp down persistent levels of inflation."
In a sign Wall Street may not be able to repeat Tuesday's rally, S&P 500 and Nasdaq futures ESc1, NQcv1 both fell over 0.5%.
Chinese blue chips .CSI300 lost 0.4%, Hong Kong's Hang Seng Index .HSI fell 0.9% and Korea's KOSPI .KS11 was down 1.78%.
U.S. Federal Reserve chair Jerome Powell is due to start his testimony to Congress today with investors looking for further clues about whether another 75 basis point rate hike is on the cards at the Fed's July meeting.
Most other global central banks are in a similar situation, apart from the Bank of Japan, which last week pledged to maintain its policy of ultra-low interest rates.
The gap between low interest rates in Japan and rising U.S. rates has been weighing on the yen JPY=, which hit a new 24-year low of 136.71 per dollar in early trading, before drifting firmer to 136.18,
Minutes from the Bank of Japan's April policy meeting released Wednesday showed the central bank's concerns over the impact that the plummeting currency could have on the country's business environment.Read full story
Other currency moves were more muted on Wednesday, with the dollar index =USD, which tracks the greenback against six peers, a touch firmer at 104.6.