Asian stocks saw gains in light trading on Wednesday, as several regional markets—China, Hong Kong, Singapore, and South Korea—remained closed in observance of the Lunar New Year.
The technology sector experienced a rebound as concerns over a newly emerged cost-effective Chinese AI model diminished. Market focus shifted to the upcoming earnings reports from major U.S. technology firms, including Meta Platforms (formerly Facebook), Microsoft, and Tesla, coupled with anticipation surrounding the Federal Reserve's initial interest rate decision of 2025, expected later that day.
In the currency markets, the dollar remained stable in Asia following two days of gains. Meanwhile, gold prices edged down, and oil prices showed mixed movements.
Japan's stock market rallied, driven by a weaker yen, which benefited export-oriented stocks. The Nikkei average jumped 1.02%, closing at 39,414.78, thus breaking a three-day losing streak. The broader Topix index ended 0.68% higher at 2,775.59. Among notable gains, Panasonic increased by approximately 1%, Sony surged by 3.8%, and SoftBank advanced by 2.4% following its recent downturn, with Advantest rising 4.4% and Tokyo Electron gaining 2.3%.
In Australia, equities moved upward after reports indicated that core inflation had decreased more than expected in the last quarter of 2024, supporting expectations of a possible quarter-point rate cut by the Reserve Bank of Australia in February. The S&P/ASX 200 index rose by 0.57% to 8,447, while the broader All Ordinaries index climbed 0.65%, settling at 8,700.70. The financial sector led the advance, with banks such as Westpac and ANZ approaching record highs. Additionally, energy stocks and gold miners performed well, although a decline in copper prices impacted the mining sector negatively.
Star Entertainment's shares soared by 13% following the company's announcement that it would sell its Star Sydney Event Centre assets to Foundation Theatres, a theatre owner and operator, for A$60 million, in an effort to strengthen liquidity.
Over in New Zealand, the S&P/NZX 50 index registered a 0.35% increase, closing at 13,003.04.
On the previous day, U.S. markets closed on a positive note, showing signs of recovery from a tech-related slump induced by DeepSeek's unexpected emergence in the AI arena. Economic reports indicated a 2.2% decline in durable goods orders for December, alongside a consecutive monthly decrease in consumer confidence for January. The tech-heavy Nasdaq Composite gained 2%, the S&P 500 rose by 0.9%, and the Dow increased by 0.3% as investors anticipated major tech earnings and the Federal Reserve's meeting.
