Asian shares were mostly higher in early Wednesday trade as investors digested earnings releases from regional corporates and a resurgent dollar.

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Japan's Nikkei 225 edged down 0.03 percent, with gains in most tech stocks offset by losses in auto names. South Korea's Kospi rose 0.67 percent as markets returned from a public holiday.

Australia's S&P/ASX 200 gained 0.07 percent, as steep gains in the energy sub-index, which was up by 3.26 percent, were offset by declines in the health care, information technology and financial sub-indexes.

US July retail sales rose 0.6 percent, which was stronger than the 0.4 percent forecast in a Reuters poll. Meanwhile, retail sales for the month of June were revised upwards to reflect a 0.3 percent gain from a previously recorded 0.2 percent decline.

The strong showing in retail sales led to an increase in expectations for another Federal Reserve rate hike by the end of the year. Market expectations for at least one new rate hike by the end of the year were at about 54 percent Tuesday, up from just 37 percent on Monday, according to the CME Group's FedWatch tool.

The dollar jumped to its highest levels in around three weeks against a basket of currencies on the back of the strong retail sales released Monday. The dollar index stood at 93.820 at 8:01 a.m. HK/SIN after rising as high as 94.139 in the overnight session.

However, one reason gains in the dollar were capped despite the positive data release could be that markets were still keeping an eye on receding geopolitical tensions. "The market does not truly believe the US-North Korea showdown is over," BK Asset Management Managing Director of FX Strategy Kathy Lien wrote in a note.

In currencies, the dollar edged up against the yen, with the greenback fetching 110.66 yen at 8:02 a.m. HK/SIN. That was above the 109 handle seen since the middle of last week when geopolitical tensions over the Korean peninsula ramped up.

Oil prices advanced after markets were pressured by signs of easing petroleum demand in China on Tuesday, according to Reuters. Brent crude rose 0.41 percent to trade at USD 51.01 a barrel and US West Texas Intermediate gained 0.34 percent to trade at USD 47.71.

With reporting season underway in Australia, market movers included biopharmaceuticals company CSL, which saw its stock fall 5.65 percent in early trade. The company reported full-year underlying net profit after tax rose 24 percent compared to the year before.

Origin Energy saw its shares tack on 5.11 percent after the company reported that full-year results for the year ending on June 30 rose to AUSD 550 million (USD 430.38 million) compared to the A$365 million seen one year ago. The company chose not to pay a dividend for the second half of the year as it continued to focus on "reducing debt," according to a release on the Australian Securities Exchange.

Meanwhile, Westfield Corporation shares were up 2.51 percent after the retailer, which operates shopping malls in the US and UK, announced half-year net profit for the first six months of the year came in at USD 589 million.

On the earnings front, notable companies in the region reporting results on Wednesday include Tencent, Cathay Pacific and Geely Auto.

In economics news, the IMF on Monday revised upward its growth forecast for China. The IMF said growth would average 6.4 percent for the period between 2017 and 2021. However, the rosier outlook came with the additional risk of higher debt, the IMF added. It also pushed China to intensify its deleveraging efforts.

Ahead, investors are anticipating the release of the Federal Open Market Committee minutes during US hours.

Major indexes on Wall Street closed mostly flat after retail stocks recorded sharp losses.

First Published:Aug 16, 2017 7:37 AM IST