Asian Stock Market: Follows Wall Street lower ahead of FOMC minutes

• Asian stocks edge lower on Wednesday as investors' risk appetite subsides.
• Risk aversion amid rising coronavirus cases globally reduced exposure in riskier assets.
• US top official warns China on its assertive stance towards Australia.

Asia-pacific stocks traded lower on Wednesday as investors ditch riskier assets ahead of the minutes from the Federal Reserve's recent monetary policy meeting. 

MSCI’s broadest index of Asia-pacific shares outside Japan rose 0.4%. 

Japan’s Nikkei 225 fell 0.9%, reversing gains of 0.16% yesterday. Traders reacted to the report that the Japanese government is potentially keeping its quasi-state of emergency in Tokyo in place during the Summer Olympics, as coronavirus cases continue to accelerate in the region.

Hong Kong’s Hang Seng Index lost 0.1% to near its six-month low on  China’s tech woes.

The ASX 200 led the gains, trading at a near two-week high as investors digested the Reserve Bank of Australia (RBA) stance on the gradual withdrawal of emergency policy support.

The FOMC minutes remained a key event,  which could reveal the details of the policymaker’s thinking process on tapering their asset buying and how early rate hikes could begin.

In the latest development, US President Joe Biden’s head adviser for Asia, Kurt Campbell declared that China’s relationship with Australia appears to be “ unyielding” as there is no sign of any immediate end to the “harshness” of its aggressive stance.