Asian stocks presented a mixed picture on Wednesday with the markets in Hong Kong leading regional gains due to anticipated support measures from Beijing during its annual parliamentary session. The Dollar remained stable in anticipation of testimony from Federal Reserve Chair Jerome Powell, and the decision on ECB rates. Gold prices remained steady after reaching record highs with speculations of a U.S. interest rate cut in June.
Oil prices reported a marginal increase in Asia post a two-session slump because of concerns about China's demand. China's Shanghai Composite index reported a decline of 0.26 percent, finishing at 3,039.93, while Hong Kong's Hang Seng index surged at a 1.70 percent concluding at 16,438.09. This follows China's announcement to focus on achieving technology self-sufficiency.
Japanese markets slightly recovered from initial losses, ending almost in balance. The Nikkei average ended marginally lower at 40,090.78 while the larger Topix index closed 0.39 percent higher at 2,730.67. On the other hand, Seoul stocks experienced a decline due to an inflation increase in February. The Kospi average dipped to 0.30 percent, closing at 2,641.49
Australian markets reported a slight increase, with banks playing a key role. The main S&P/ASX 200 index closed 0.12 percent higher at 7,733.50 while the broader All Ordinaries index finished marginally higher at 7,990.30. Despite GDP figures showing minimal economic expansion in the year's final quarter due to increased borrowing costs, investors remained optimistic.
Notably, ANZ's share prices increased by about 1 percent after it successfully sold a 16.5 percent stake in Malaysian bank AMMB Holdings for approximately 2.10 billion ringgit ($443.69 million). Meanwhile, Commonwealth Bank of Australia, Westpac and NB all reported an increase of around 1 percent as traders expect the first RBA rate cut in September.
However, it was not all good news as Cettire, an online luxury retailer facing scrutiny over custom practices, plummeted 14.4 percent. Magellan Financial Group, on the other hand, soared by 7.9 percent following a February FUM update.
In New Zealand, the main S&P NZX-50 index rose by 0.36 percent to 11,795.90.
Meanwhile, U.S. stocks extended their loss from previous sessions, as investors analyzed weak economic activity and looked forward to Fed Chair Jerome Powell's testimony for more direction. With the U.S. services industry growth slowing down in February, and new orders for manufactured goods decreasing more than anticipated in January, concerns about the state of the world's largest economy have been raised. The Nasdaq Composite fell by 1.7 percent, experiencing its worst single-day loss in three weeks, while the S&P 500 and the Dow both lost around 1 percent each.
