Stock market today: Asia dips ahead of U.S. inflation report

Asian shares declined in muted trading Wednesday as investors awaited an upcoming report on inflation in the United States, an important indicator for where interest rates and global growth might go in the coming months.

Asian shares declined in muted trading Wednesday as investors awaited an upcoming report on inflation in the United States, an important indicator for where interest rates and global growth might go in the coming months.

Japan's benchmark Nikkei 225 lost 0.4% in afternoon trading to 29,136.92. Australia's S&P/ASX 200 inched down 0.1% to 7,255.70. South Korea's Kospi slipped 0.9% to 2,488.42. Hong Kong's Hang Seng dipped 0.4% to 19,783.56, while the Shanghai Composite shed 1.4% to 3,309.98.

Market watchers are also worried about any signs of economic woes in China after recent data showed imports were lagging, even as exports continued to grow, although at a slower pace than before.

Focus remains on what the U.S. Federal Reserve might do on interest rates. Although the general consensus is that hikes are over for now, that view could quickly change.

"Market reaction is expected to be skewed in the event of a miss on the data, as the Fed has indicated it is prepared to raise interest rates again if needed," said Anderson Alves at ActivTrades.

On Wall Street, the S&P 500 fell 18.95 points, or 0.5%, to 4,119.17. The Dow Jones Industrial Average lost 56.88, or 0.2%, to 33,561.81, while the Nasdaq composite fell 77.37, or 0.6%, to 12,179.55.

So far this earnings reporting season, which is approaching its final stretch, the majority of companies have been topping forecasts for first-quarter results. That's largely because expectations were set quite low due to a slowing economy and high interest rates. Companies in the S&P 500 are still on track to report a second-straight quarter of weaker profits from year-earlier levels.