Asian stocks concluded with varied outcomes on Wednesday during a brief holiday week. Chinese and Hong Kong stocks faced significant losses due to growth concerns, while Japan's stocks achieved a rally due to the weak yen and the Bank of Japan's dovish stance.
The dollar maintained its position as market participants anticipated more indications from U.S. inflation data and Federal Reserve Chair Jerome Powell’s forthcoming speech. Gold held a steady range, while oil prices declined for a second consecutive session, following data revealing a large increase in U.S. crude reserves.
Despite attempts by Pan Gongsheng, the Governor of the People's Bank of China, to alleviate worries about China's sluggish real estate market, Chinese markets concluded with considerable losses. Disregarding data which indicated a 10.2% increase in profits by China's industrial firms in the year's initial two months, the Shanghai Composite Index fell by 1.26%.
Hong Kong's Hang Seng index also fell by 1.36%. Alibaba Group faced a 2.1% decline after unexpectedly withdrawing an IPO for its logistics arm, Cainiao.
Japanese markets experienced substantial gains and the yen reached a 34-year low against the dollar. This followed Bank of Japan board member Naoki Tamura's comment that there are no fixed conditions for rate hikes. The Nikkei average hiked by 0.90% led by tech and export sectors, while the broader Topix index increased by 0.66%.
South Korean stocks ended roughly even and the won dropped to its lowest level in nearly four months before the release of crucial U.S. inflation data. In opposition, SK Hynix, a memory chip manufacturer, rallied by 2.6% following CEO remarks about high demand expectations from the artificial intelligence industry this year.
Australian markets concluded positively after the February consumer inflation report registered lower than anticipated numbers, reinforcing rate cut expectations. The S&P/ASX 200 benchmark rose by 0.51% led by bank and healthcare stocks. The broader All Ordinaries index increased by 0.46%.
In New Zealand, the S&P/NZX-50 benchmark declined by 0.18%. U.S. Stocks surrendered initial gains due to concerns about the impact of a major bridge collapse in the Baltimore port area. As for U.S. economic data, there was a mixed portrait painted by new orders for manufactured durable goods and consumer confidence readings.
The Dow slightly decreased, S&P 500 decreased by 0.3% for a third consecutive session, and the tech-focused Nasdaq Composite declined by 0.4% over two days.
