Asian Stocks Rise on AI Spending Optimism, China Concerns Linger
Asian stocks gained on Wednesday as optimism over increased artificial intelligence (AI) spending under the new Trump administration offset worries about potential tariffs on China.
Key Takeaways
* Technology stocks in Taiwan and Japan led the rally, buoyed by Trump's announcement of new AI investment initiatives.
* Chinese stocks bucked the trend, with the CSI 300 Index dipping as much as 1.3% before recovering some losses.
* Investors face uncertainty as the Trump administration prepares to implement sweeping policy changes.
* US 10-year Treasury yields ticked up, while the dollar strengthened against major currencies.
China Concerns
The decline in Chinese stocks came after President Trump indicated he was still considering a 10% tariff on all imports from China. Economists warn that such tariffs could slow down Chinese exports and harm the economy.
AI Boom
SoftBank Group's shares surged over 11% after being named a participant in the "Stargate" AI joint venture with the US government. Other tech stocks in Asia also benefited from the positive sentiment.
Central Bank Policy
The Bank of Japan is reportedly moving towards raising interest rates at its upcoming policy meeting, supporting recent market speculation. The yen weakened slightly against the dollar as the greenback strengthened globally.
New Zealand Inflation
Data released on Wednesday showed New Zealand's annual inflation remained steady in the final quarter of 2024, staying within the central bank's target range.
Key Economic Events This Week
* US Conference Board leading index (Wednesday)
* Samsung Galaxy "Unpacked 2025" event (Wednesday)
* Eurozone consumer confidence (Thursday)
* US jobless claims (Thursday)
* Bank of Japan policy meeting (Friday)
* Eurozone HCOB Manufacturing & Services PMI (Friday)
* US University of Michigan consumer sentiment, existing home sales, S&P Global Manufacturing & Services PMI (Friday)
Market Recap
* Nikkei 225 futures gained 1.5%
* Japan's Topix rose 0.8%
* Australia's S&P/ASX 200 climbed 0.2%
* Hong Kong's Hang Seng lost 1.3%
* The Shanghai Composite fell 0.8%
* The euro traded at $1.0420
* Bitcoin dipped 0.9% to $105,781.73
* US 10-year Treasury yields rose one basis point to 4.59%