Most Asian stock markets edged higher on Wednesday, supported by a modest rebound in the battered technology sector. However, growing uncertainty surrounding the U.S. economy capped overall gains across the region.
Regional equities broadly followed a mixed overnight session on Wall Street, where uneven labor market data and weak purchasing managers index readings kept investors cautious about the outlook for the world’s largest economy.
S&P 500 futures slipped 0.1% by 23:22 ET (04:22 GMT), as attention turned to U.S. consumer price index inflation data scheduled for release on Thursday.
Asian tech stocks recover after recent selloff
Technology-heavy Asian markets posted gains after several sessions of steep losses, helped by selective bargain buying.
South Korea’s KOSPI climbed 0.8%, while Hong Kong’s Hang Seng Index added 0.1%. The tech sector benefited from renewed buying interest after last week’s sharp declines driven by concerns over artificial intelligence valuations.
South Korea had been among the hardest hit by the recent tech selloff, with Hong Kong also nursing notable losses.
U.S. market developments provided additional support. Shares of robotaxi firms Pony AI and WeRide jumped more than 3% each in Hong Kong, tracking gains in Tesla after CEO Elon Musk said the company was testing robotaxis without human safety drivers.
Asian suppliers to Apple also advanced. Hong Kong-listed Lens Technology and South Korea’s LG Display rose following reports that Apple plans to expand its iPhone lineup. Separate reports indicated the company is in early discussions to shift part of its chip production to India.
Despite these gains, broader Asian markets remained constrained by lingering concerns over U.S. economic growth and rising fiscal pressures across developed economies.
China rebounds as stimulus expectations linger
Chinese equities rose in afternoon trade, with the Shanghai Shenzhen CSI 300 and Shanghai Composite gaining between 1% and 2%. The rebound occurred despite a lack of clear catalysts and left both indices trading within the range established over the past week.
Investor focus remains firmly on Beijing’s plans for additional fiscal stimulus, particularly after a series of weak economic indicators for November.
Mixed performance across Asia-Pacific markets
Australia’s ASX 200 declined 0.4%, while Singapore’s Straits Times Index fell 0.3%, even as data showed an increase in the city-state’s non-oil exports in November.
India’s Nifty 50 slipped 0.1% after Reserve Bank of India Governor Sanjay Malhotra said interest rates would need to stay low for a “long period.” He also warned that U.S. trade tariffs could pose further risks to India’s economic growth.
Malhotra’s comments came as suspected RBI intervention helped trigger a sharp rebound in the Indian rupee from record lows.
Japan stocks rise on trade data, BOJ caution remains
Japanese stocks posted modest gains, supported by optimism following stronger-than-expected trade data for November. Exports rose well above forecasts, suggesting overseas demand could support the economy in the current quarter.
The Nikkei 225 rose 0.3%, while the broader TOPIX index was flat.
However, gains were limited ahead of a key Bank of Japan policy meeting. Analysts widely expect the BOJ to raise interest rates at the conclusion of its two-day meeting on Friday.
Expectations for a rate hike have been fueled by persistent weakness in the yen and stubborn inflation pressures, which continue to weigh on the Japanese economy.
Markets are also awaiting Japan’s consumer price index data for November, due on Friday, which is expected to provide further insight into domestic inflation trends.
