Asia-Pacific markets traded mixed on Wednesday as investors reacted to overnight losses on Wall Street, driven by weak US consumer confidence data and a pullback in tech stocks.
Japan’s Nikkei 225 and Australia’s ASX 200 extended their losing streaks, while Hong Kong’s Hang Seng index surged on optimism ahead of the city’s budget announcement.
Japan and Australia decline; South Korea and China edge higher
Japan’s benchmark Nikkei 225 fell for a second straight session, dropping 1.09%, while the Topix index declined 0.99%, as investors assessed global economic concerns.
In Australia, the S&P/ASX 200 slipped 0.26%, weighed down by persistent inflation worries.
The country’s consumer price index rose 2.5% year-on-year in January, aligning with market expectations and reinforcing cautious sentiment.
Meanwhile, South Korea’s Kospi inched up 0.11%, with the Kosdaq rising 0.52%, while China’s CSI 300 opened 0.16% higher.
Hong Kong’s Hang Seng index led regional gains, climbing 1.71% ahead of the government’s 2025-2026 budget announcement.
Wall Street downturn weighs on sentiment
Overnight, US stocks retreated as investors fretted over slowing economic growth and the Federal Reserve’s monetary policy outlook.
The S&P 500 fell 0.47%, marking its fourth straight losing session, while the Nasdaq Composite plunged 1.35%, dragged down by a 2.8% drop in Nvidia’s shares.
The Dow Jones Industrial Average, however, bucked the trend, rising 0.37%.
The broader sell-off in tech stocks continued, with the “Magnificent Seven” mega-cap tech stocks slumping 3%, pacing for their worst session since December 2024.
Among individual stocks, Palantir shares slid 4% on Tuesday, extending last week’s 15% decline, after the company announced a stock sale plan by CEO Alex Karp and concerns emerged over potential defense budget cuts.
Treasury yields slide; dollar dips, oil and gold rebound
US Treasury yields continued their decline on Wednesday as growing expectations of Federal Reserve rate cuts pressured the market.
The benchmark 10-year yield slipped to a more than two-month low of 4.2830%, while the two-year yield edged down by 1 basis point to 4.0860%.
The weaker yields weighed on the dollar, particularly against the yen.
The greenback dipped 0.13% to 148.81 yen after hitting a four-month low in the previous session.
Meanwhile, the euro hovered near a one-month high at $1.0522, and the British pound remained close to a two-month peak, last trading at $1.2675.
In commodities, Brent crude rebounded 0.34% to $73.27 per barrel, recovering some ground after a sharp 2% drop in the prior session.
US West Texas Intermediate (WTI) crude followed suit, rising 0.36% to $69.18 per barrel after Tuesday’s 2.5% slump.
Gold also saw modest gains, edging up 0.1% to $2,918.50 an ounce as investors sought safety amid economic uncertainty.
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