Asian stocks edged higher on Wednesday, rebounding from a sharp technology selloff triggered by concerns over China’s DeepSeek AI model.
Key Market Movements
Tech Rebound: Japanese tech stocks like Advantest Corp. (TYO:6857), Tokyo Electron Ltd. (TYO:8035), and SoftBank Group Corp. (TYO:9984) stabilized, while Renesas Electronics Corp. (TYO:6723) gained 2.7%.
Australian Stocks Surge: The ASX 200 hit a two-month high as weaker-than-expected CPI inflation fueled expectations of a rate cut by the Reserve Bank of Australia.
Muted Trading: Markets in China, Hong Kong, Taiwan, Singapore, and South Korea were closed for Lunar New Year holidays.
Wall Street Influence: A rebound in U.S. tech stocks provided support, but U.S. stock futures fell in Asian trade ahead of the Federal Reserve’s policy decision.
Key Catalysts Ahead
Fed Meeting: The central bank is expected to keep rates steady but maintain a hawkish stance.
Major Earnings Reports: Wall Street heavyweights, including Microsoft (NASDAQ:MSFT), Tesla (NASDAQ:TSLA), ASML (NASDAQ:ASML), and Alibaba (NYSE:BABA), are set to report Q4 earnings.
Investor Takeaways
Monitor tech sector recovery using the Sector Historical API to track sector performance trends.
Stay updated on interest rate expectations with the Economic Calendar API for central bank rate decisions and economic data releases.
Final Thoughts
While Asian markets are showing signs of stability, uncertainty remains over U.S. interest rates and AI-driven market disruptions. With major earnings reports due, the next few sessions could set the tone for tech stocks globally.