Asia stocks mostly higher as Syria risks recede; Nikkei ends flat

Asian stock markets were mostly higher on Wednesday, as the odds of a U.S. military strike against Syria receded and amid ongoing indications China’s economy is strengthening.

During late Asian trade, Hong Kong's Hang Seng Index was down 0.3%, Australia’s ASX/200 Index ended 0.64% higher, while Japan’s Nikkei 225 Index ended little changed.

In an address to the nation late Tuesday, U.S. President Barack Obama said that he had asked Congress to postpone a vote on military action against Syria and that he will explore a plan proposed by Russia for Syria to place its chemical weapons under international control.

In Tokyo, the Nikkei rallied to the highest level since July 25 in early trade before paring gains to end little changed as traders monitored movements in the yen.

USD/JPY rose to hit a session high of 100.60, before trimming gains to trade at 100.30. A weaker yen reduces the value of overseas income at Japanese companies when repatriated, improving the outlook for export earnings.

Automakers Mazda and Mitsubishi saw shares rise 2.65% and 4.2% respectively, while Komatsu gained 2.7%. 

Meanwhile, in Hong Kong, the Hang Seng rose to a fresh four-month high, before turning lower on profit-taking, amid indications that the Chinese economy is recovering from a slowdown.

Data released on Tuesday showed that Chinese retail sales rose unexpectedly in August, while Chinese industrial production increased more-than-forecast last month.

Oil majors were lower as prices pulled back sharply amid easing fears over a disruption to supplies from the Middle East.

PetroChina saw shares drop 2.7%, while CNOOC slumped 1.2%.

Elsewhere, in Australia, the benchmark ASX/200 Index re-approached a five-year high hit in May amid growing optimism over the global economic outlook.

Rio Tinto shares climbed 2%, BHP Billiton advanced 1.2%, while Fortescue Metals Group surged 6.4%.

Looking ahead, European stock market futures pointed to a modestly lower open.

The EURO STOXX 50 futures pointed to a loss of 0.25% at the open, France’s CAC 40 futures dipped 0.15%, London’s FTSE 100 futures eased down 0.2%, while Germany's DAX futures pointed to a decline of 0.15% at the open.

Investors continued to speculate over the timing of the Federal Reserve’s widely expected reduction in monthly bond purchases following last week’s weaker-than-forecast U.S. jobs report.

The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of global equities.