Asian stocks were mixed on Wednesday after a sharp decline in Big Tech stocks led to Wall Street’s worst day in three weeks. Despite this, U.S. futures and oil prices rose, providing some optimism for investors.
In Japan, the Nikkei 225 index remained virtually flat at 40,090.78, while Hong Kong’s benchmark rebounded 1.4% to 16,385.90. This rebound came ahead of reports by top Chinese economic officials at the annual session of the country’s ceremonial legislature. The day before, Hong Kong’s market had fallen 2.6% after China’s premier announced a modest target for economic growth this year and plans for limited stimulus.
Meanwhile, the Shanghai Composite index fell 0.2% to 3,040.82, as concerns lingered about the effectiveness of China’s stimulus measures. Analysts like Tan Boon Heng of Mizuho Securities are closely watching the signals coming out of the National People’s Congress for clues on the government’s plans to stimulate the economy.
In South Korea, the Kospi sank 0.3% to 2,641.49, as inflation accelerated in February, surpassing the annual target of 2%. The Bank of Korea has held interest rates steady for nine consecutive meetings, despite the higher inflation rate.
Elsewhere in Asia, Australia’s S&P/ASX 200 edged 0.1% higher, while India’s Sensex slipped 0.4% and Bangkok’s SET added 1%.
On Wall Street, the S&P 500 dropped 1% to 5,078.65, with the Nasdaq leading the market lower with a 1.7% slide. Apple’s decline of 2.8% weighed heavily on the market, as concerns about sluggish iPhone sales in China persist.
Bitcoin briefly rose above $69,000 on Tuesday, setting a new record before pulling back below $63,000. The cryptocurrency has been surging, in part due to new exchange-traded funds that make it easier for investors to access.
Hopes for interest rate cuts were boosted after reports showed slower growth in U.S. services industries and a moderation in prices paid by businesses. Traders are now betting that the Federal Reserve may begin cutting rates as early as June, in an effort to cool inflation.
Federal Reserve Chair Jerome Powell’s testimony before Congress on Wednesday could provide further insight into the central bank’s plans. In the bond market, the yield on the 10-year Treasury fell to 4.16% on Wednesday.
Overall, the global markets remain volatile, with investors closely monitoring economic data and central bank actions for clues on the future direction of stocks, oil prices, and currencies.
