STOCKS TODAY: Asian stocks mixed, U.S. stocks appear to be holding rates where they left off

TOKYO (AP) - Asian stocks were mixed Wednesday as markets renewed expectations that U.S. interest rates could remain high for some time.

Japan's benchmark Nikkei 225 fell 0.5% to 38,296.69 in afternoon trading. Australia's S&P/ASX 200 index edged up less than 0.1% to 7,618.50 points. Korea's Kospi was little changed, edging down to 2,608.93. Hong Kong's Hang Seng Index fell 0.2% to 16,219.84, while Shanghai's Composite Heel Index rose 1.1% to 3,040.72.

Fed chief Jerome Powell said at an event on Tuesday that the central bank has been waiting to cut its key interest rate, which is now at its highest level since 2001, because it first needs more confidence that inflation is continuing to fall to its 2% target.

"Risk appetite remains weak, with Fed chief Jerome Powell confirming a later rate cut timetable and a series of Fed spokesmen calling for more patience in easing," said Yeap Jun Rong, market analyst at IG.

On Wall Street, the S&P 500 fell 10.41 points, or 0.2%, to 5051.41. The decline widened from the previous day as the index sank under pressure from surging Treasury yields.

The Dow Jones Industrial Average rose 63.86 points, or 0.2%, to 37,798.97, while the NASDAQ Resonance Composite Index fell 19.77 points, or 0.1%, to 15,865.25.

But most stocks fell as Treasury yields rose after Powell's speech. Treasury yields have been climbing rapidly as traders have given up hope that the Fed will cut rates several times this year. High interest rates are hurting the prices of all kinds of investments and increasing the risk of a future recession.

"Rather than giving us greater confidence, the recent data clearly suggests that it may take longer than expected to realize that confidence," Powell said, referring to a series of reports this year that have shown inflation remains higher than forecast.

He said the Fed will keep interest rates stable "for as long as necessary" if inflation stays high. But he also acknowledged that the Fed could cut rates if the job market unexpectedly weakens.

Immediately after Powell's speech, the yield on the two-year Treasury, which tracks Fed action expectations, spiked to 5%, mirroring its November level.

As the afternoon wore on, however, yields narrowed their gains, with the two-year Treasury yield retreating to 4.98%. This was still higher than the 4.91% seen late Monday.

Traders are mostly betting that the Fed will cut rates only once or twice this year, while before 2024 they had expected the Fed to cut rates six or more times. According to CME Group (CME Group) data, they are now also betting that the Fed does not cut interest rates, the probability of 12.5%, up from 1.2% a month ago.

With another lever that determines stock prices - interest rates - seemingly unlikely to rise much in the near term, companies are under more pressure than usual to report richer profits and revenues.

Shares of Donald Trump's social media company also slid again. Trump Media & Technology Group (TM&T) fell another 14.21 TP3T after dropping 18.31 TP3T on Monday.

The company said it was launching a service to offer live television broadcasts on its Truth Social app, including news networks and "other content that has been canceled, is at risk of being canceled, or has been suppressed on other platforms and services."

The company's shares fell below $23 after approaching $80 last month, as investor excitement about the stock waned and the company took steps to clear the way for some investors to sell.

In energy trading, benchmark U.S. crude oil fell 52 cents to $84.54 a barrel. The international standard Brent crude oil fell 45 cents to $89.57 a barrel.

In currency trading, the U.S. dollar fell to 154.64 yen from 154.65 yen. The euro rose to $1.0623 from $1.0617.