(fxcue news) - Asian stock markets are trading mostly higher on Wednesday, following the mixed cues from Wall Street overnight, as traders react to the Biden administration's renewed efforts to secure a cease-fire in the Middle East. The recent surge by bond yields and waning optimism about the outlook for interest rates is weighing on the markets. Asian markets closed mostly lower on Tuesday. With recent comments from US Fed officials suggesting the central banks plans to gradually lower rates, CME Group's FedWatch Tool is currently indicating an 89.6 percent chance of a 25 basis point rate cut next month. Australian shares are trading slightly higher on Wednesday, recouping some of the sharp losses in the previous session, with the benchmark S&P/ASX 200 staying above the 8,200 level, following the mixed cues from Wall Street overnight, with gains in mining and energy stocks amid firmer commodity prices, partially offset by weakness in technology stocks. The benchmark S&P/ASX 200 Index is gaining 3.40 points or 0.04 percent to 8,209.10, after touching a high of 8,232.60 earlier. The broader All Ordinaries Index is up 4.10 points or 0.05 percent to 8,473.10. Australian stocks ended sharply lower on Tuesday. Among major miners, Rio Tinto is edging up 0.2 percent, Fortescue Metals is adding more than 1 percent and BHP Group is gaining almost 1 percent, while Mineral Resources is losing almost 2 percent. Oil stocks are mostly higher. Origin Energy is edging up 0.1 percent, Beach energy is gaining almost 2 percent and Santos is adding almost 1 percent. Woodside Energy is flat. In the tech space, Afterpay owner Block is losing more than 1 percent, Xero is edging down 0.1 percent and Appen is slipping more than 3 percent, while WiseTech Global and Zip are declining almost 2 percent each. Among the big four banks, ANZ Banking and Westpac are edging up 0.2 to 0.4 percent each, while Commonwealth Bank is edging down 0.1 percent. National Australia Bank is flat. Among gold miners, Resolute Mining and Gold Road Resources are edging up 0.2 to 0.3 percent each, while Newmont is gaining more than 1 percent. Northern Star Resources is edging down 0.3 percent. Evolution Mining is flat. In the currency market, the Aussie dollar is trading at $0.668 on Wednesday. The Japanese stock market is modestly lower in choppy trading on Wednesday, adding to the losses in the previous two sessions, following the mixed cues from Wall Street overnight. The Nikkei 225 is falling to stay a tad above the 38,300 level, with traders remaining cautious ahead of the general election this weekend. The benchmark Nikkei 225 Index closed the morning session at 38,300.81, down 111.15 points or 0.29 percent, after touching a high of 38,514.33 and low of 38,293.14 earlier. Japanese stocks ended sharply lower on Tuesday. Market heavyweight SoftBank Group is losing almost 1 percent and Uniqlo operator Fast Retailing is edging down 0.5 percent. Among automakers, Honda is gaining more than 3 percent and Toyota is advancing almost 4 percent. In the tech space, Advantest and Screen Holdings are edging up 0.1 to 0.3 percent each, while Tokyo Electron is losing almost 1 percent. In the banking sector, Sumitomo Mitsui Financial and Mitsubishi UFJ Financial are losing almost 1 percent each, while Mizuho Financial is edging down 0.5 percent. Among the major exporters, Panasonic and Canon are edging up 0.1 to 0.5 percent each, while Mitsubishi Electric is gaining more than 1 percent. Sony is edging down 0.2 percent. Among other major gainers, Konica Minolta is skyrocketing more than 11 percent, Tokyo Tatemono is surging more than 7 percent, Asahi Group is gaining almost 4 percent, Subaru is adding more than 3 percent and Denso is up almost 3 percent. Conversely, Recruit Holdings is losing almost 3 percent. In the currency market, the U.S. dollar is trading in the higher 151 yen-range on Wednesday. Elsewhere in Asia, China, Hong Kong, Singapore, South Korea, Malaysia and Indonesia are higher by between 0.1 and 1.0 percent each. New Zealand and Taiwan are down 0.3 and 0.5 percent, respectively. On the Wall Street, stocks regained ground over the course of the trading day on Tuesday after coming under pressure early in the session. The major averages climbed well off their worst levels of the day before ending the day little changed. The major averages moved to the downside going into the close, finishing narrowly mixed. While the Nasdaq rose 33.12 points or 0.2 percent to 18,573.13, the Dow edged down 6.71 points or less than a tenth of a percent to 42,924.89 and the S&P 500 slipped 2.78 points or 0.1 percent to 5,851.20. Meanwhile, the major European markets saw modest weakness on the day. While the French CAC 40 Index closed just below the unchanged line, the U.K.'s FTSE 100 Index edged down by 0.1 percent and the German DAX Index dipped by 0.2 percent. Crude oil prices rose sharply on Tuesday amid hopes that China's latest stimulus move will push up demand, although the upside was limited by a possible a ceasefire deal in the Middle East. West Texas Intermediate Crude futures for November added $1.53 or 2.1 percent at $72.09 a barrel.