Asia-Pacific markets mostly advanced on Wednesday, following Wall Street’s overnight gains despite ongoing US-China trade tensions, CNBC reports.
Investors appeared to shake off concerns after Beijing announced tariffs in retaliation for new duties imposed by Washington.
China’s CSI 300 Index initially rose but reversed course to close 0.58% lower at 3,795.08. This marked a cautious return to trading after the Lunar New Year holidays, as investors assessed the impact of the trade spat and disappointing economic data.
The Caixin Services PMI for January came in at 51.0, down from December’s 52.2 reading, signaling a slowdown in services activity. Employment in the sector contracted for the second consecutive month, reflecting persistent cost-cutting efforts by businesses.
Kai Wang, Asia equity analyst at Morningstar, downplayed the immediate impact of China’s tariffs on US goods, calling them “largely symbolic” as only 12% of total US imports would be affected. However, he warned that “the volatility risk remains on the table for the next four years at least.”
Regional Market Highlights
- Japan: The Nikkei 225 rose 0.09% to close at 38,831.48, while the broader Topix index gained 0.27% to 2,745.41.
- South Korea: The Kospi climbed 1.11% to 2,509.27, and the small-cap Kosdaq surged 1.54% to 730.98. South Korea’s January consumer price index rose 0.7% month-on-month and 2.2% year-on-year, surpassing analysts’ estimates.
- Hong Kong: The Hang Seng index fell 0.97% in its final hour of trade.
- Australia: The S&P/ASX 200 advanced 0.51% to close at 8,416.90.
- India: Markets showed a mixed response as the Reserve Bank of India began its monetary policy meeting. The Nifty 50 traded near the flatline, while the BSE Sensex fell 0.22%.
US markets closed higher overnight as investors looked beyond trade tensions. The tech-heavy Nasdaq Composite rose 1.35% to 19,654.02, while the S&P 500 gained 0.72% to 6,037.88. The Dow Jones Industrial Average added 134.13 points, or 0.3%, to 44,556.04.
Strong earnings boosted software giant Palantir, which surged 24% after reporting better-than-expected fourth-quarter results. AI leader Nvidia also advanced 1.7%.
