Asian markets trade mixed ahead of key US inflation data

Asian equities were split at Wednesday's opening bell as traders held back before the latest US inflation report. Mettis Global reported that South Korea's Kospi climbed 1.17% and Japan's broader Topix added 0.3%, while the small-cap Kosdaq fell 1.35%, the Nikkei 225 eased 0.17% and Australia's S&P/ASX 200 lost 0.52%. In the US, futures were little changed overnight, with Dow contracts up 22 points or 0.04%.

Attention now centres on the July consumer price index, which is scheduled for later on Wednesday. Economists expect headline prices to rise 0.1% month on month and core prices 0.2%, leaving annual readings at 3.4% for headline and 2.5% for core, both sitting above the Fed's 2% goal. A hotter figure could strengthen bets on tighter policy at the September Fed meeting, whereas a cooler one could soothe fears of more rate hikes. Treasury yields are also under watch, with the 10-year around 4.7% and the two-year near 4.2%, signalling lingering unease about the rate outlook.

Crude above $83 a barrel has added to inflation worries, while doubts about the Strait of Hormuz reopening keep the outlook unsettled. The July producer price index is due Thursday and should add more signals on price pressure. Cerebras and Cisco report earnings later on Wednesday.