Asia-Pacific stocks are mostly in the green, as US inflation data remains a major focus

Asia-Pacific stocks were mostly higher as investors await the release of the US consumer price index on Thursday. Economists anticipate that inflation will have slowed in December, signalling to the Federal Reserve that previous interest rate hikes have had the desired effect.

Following the release of the country's November trade balance, Australia's S&P/ASX 200 closed 1.18% higher at 7,280.4.

The Nikkei 225 finished flat at 26,449.82, while the Topix gained 0.36% to 1,908.18. The Kospi in South Korea rose 0.24% to 2,365.1, while the Kosdaq fell 0.15% to 710.82.

The Hang Seng index in Hong Kong fell slightly, reversing earlier gains. Mainland The Shanghai Composite rose 0.051% to 3,163.45 and the Shenzhen Component rose 0.23% to 11,465.73. China's consumer price index increased 1.8% year on year in December, as expected.

India's December inflation data is also set to be released.

Major stock indexes closed higher on Wall Street overnight. Dow Jones economists polled expect the December inflation print to show that prices fell by 0.1% from November.