Tokyo, Japan (BBN)-Asian shares headed lower on Wednesday as investors weighed up the growing risks of a US interest rate rise as early as next month.
The latest hint came after Atlanta Federal Reserve president Dennis Lockhart told the Wall Street Journal that it would take significant deterioration in the economy for him not to support a rise in September, reports BBC.
The dollar rose against the yen, hitting 124.34 from 123.77 on Tuesday.
The Nikkei fell 0.2 per cent to 20,489 points.
Shares of car maker Toyota weighed on the Japanese index, falling 2.7 per cent despite reporting that its net profit for the June quarter jumped 10 per cent.
The shift to higher rates in the US has been resulted in the withdrawal of funds from emerging markets, putting pressure on their currencies.
South Korean shares were flat, with the Kospi index at 2,027 points.
In China, the Shanghai Composite was down 0.1 per cent to 3,750 points, while Hong Kong’s Hang Seng index was up 0.3 per cent to 24,478 points.
In Australia, the S&P/ASX 200 index was 0.8 per cent lower at 5,654 points despite commodity prices steadying.