(Bloomberg) -- Shares in Asia fell Wednesday as investors balanced encouraging data that supported a slowdown in Federal Reserve rate hikes with Poland saying a Russian-made missile hit its territory.

Stocks in Australia and Japan declined and share futures in Hong Kong and the US dropped. Treasuries held gains. The dollar steadied after falling sharply after US producer price index data undershot estimates, easing inflation concerns, before surging on news of the missile strike.

Commodities including oil and corn jumped as information of the explosion near the border with Ukraine filter through. Two people were reported to have been killed, prompting speculation about a potential response.

The S&P 500 added nearly 1% Tuesday as investors responded to the prospect of slowing Fed rate hikes. A slew of Fed speakers in recent days have indicated the central bank could slow the tempo of rate rises while cautioning more work is needed to tame inflation.

“I don’t think we’re at the trough,” said Ann Berry, founder and managing partner of Threadneedle Ventures in New York, speaking on Bloomberg TV about the S&P 500. “I would not be surprised if we hit the 3,600 level again if we see the confidence that has come into the market deflate,” she said, implying a 10% decline from Tuesday’s closing price.

Key events this week:

• US business inventories, cross-border investment, retail sales, industrial production, Wednesday

• Fed’s John Williams, Lael Brainard and SEC Chair Gary Gensler speak, Wednesday

• ECB President Christine Lagarde speaks, Wednesday

• Eurozone CPI, Thursday

• US housing starts, initial jobless claims, Thursday

• Fed’s Neel Kashkari, Loretta Mester speak, Thursday

• US Conference Board leading index, existing home sales, Friday

Some of the main moves in markets:

Stocks

• Futures on the S&P 500 fell 0.3% as of 9:41 a.m. Tokyo time. The S&P 500 rose 0.9%

• Nasdaq 100 futures fell 0.4%, The Nasdaq 100 climbed 1.5%

• Hang Seng futures fell 0.3%

• The Topix Index fell 0.7%

• Australia’s S&P/ASX 200 Index fell 0.4%

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.0348

• The Japanese yen was little changed at 139.15 per dollar

• The offshore yuan was little changed at 7.0502 per dollar

Bonds

• The yield on 10-year Treasuries declined one basis point to 3.76%

• Australia’s 10-year yield declined six basis points to 3.70%

Commodities

• West Texas Intermediate crude rose 0.3% to $87.18 a barrel

• Spot gold was little changed