KOSPI up 0.8%, Nikkei 225 and TOPIX indexes dropped 0.7% and 1.5%, respectively, Straits Times index gained 0.6%, while ASX 200 dropped 0.3%

Most Asian stocks mixed on Wednesday, as strength in technology shares offered support.

Japanese markets lagged as a Bank of Japan survey showed improving confidence among major manufacturers– a trend that could give the central bank more impetus to hike interest rates.

Trading volumes were dulled by holidays in China and Hong Kong for the National Day. Mainland China markets will remain shut until the middle of next week.

Indian markets stemmed recent losses after the Reserve Bank of India held interest rates as expected and forecast stronger economic growth this year.

Tech-heavy Asian bourses were the best performers on Wednesday, with KOSPI up 0.8%.

Nikkei 225 and TOPIX indexes were the worst performers in Asia, dropping 0.7% and 1.5%, respectively.

Stocks were quashed chiefly by increasing concerns over an interest rate hike by the Bank of Japan, after a survey showed increasing confidence among the country’s biggest manufacturers.

The central bank is widely expected to consider hiking rates during a meeting in late-October.

Expectations of a BOJ rate hike buoyed the yen, which in turn weighed on major export stocks.

Broader Asian markets were a mixed bag. Straits Times index gained 0.6% on strength in tech shares, while ASX 200 dropped 0.3%, extending losses after the Reserve Bank of Australia struck a hawkish tone on Tuesday.

Mining giant BHP Group Ltd dropped 2% and was a major weight on the ASX after Bloomberg reported that China had instructed firms to temporarily halt purchases of new dollar-denominated iron ore cargoes from the miner.

Nifty 50 index gained 0.2%, stemming recent losses after the central bank held interest rates as expected.