Stocks in Asia were subdued on Wednesday after U.S. Federal Reserve Chairman Jerome Powell tempered expectations for a potential interest rate cut. The Nikkei 225 in Japan declined 0.51% to close at 21,086.59, with shares of index heavyweights Fast Retailing and Softbank Group slipping. The Topix index fell 0.59% to finish its trading day at 1,534.34. In South Korea, the Kospi closed just above the flat line at 2,121.85, while Australia's slipped 0.26% to end its trading day Down Under at 6,640.50. Mainland Chinese shares struggled for gains on the day. The Shanghai composite was down 0.19% to 2,976.28, while the Shenzhen composite was largely flat at 1,560.51. The Shenzhen component, meanwhile, rose fractionally to 9,122.43. In Hong Kong, the Hang Seng index was slightly higher, as of its final hour of trading.

Overnight stateside, Dow Jones Industrial Average ended about 179 points lower at 26,548.22 — its biggest one-day loss since May 31. The also closed approximately 0.95% lower at 2,917.38, while the Nasdaq Composite fell 1.51% to close at around 7,884.72. The moves on Wall Street came as Powell said the U.S. central bank is assessing whether current economic uncertainties call for lower rates. Powell noted the Fed will take a wait-and-see approach given how rapid recent economic changes have been, but added the Fed is "insulated from short-term political interests. " One strategist said Powell's comments had left the market "none the wiser in terms of whether or not the Fed will look to embark on a new easing cycle at the end of July." "While the word 'patience' was dropped in the (Federal Open Market Committee) statement, it seems that Powell is still on a wait and see mode noting that much will depend on the incoming data and specifically the near-term risks (which we take to mean upcoming trade discussions)," Rodrigo Catril, senior foreign exchange strategist at National Australia Bank, wrote in a note.

US-China trade