Asian stock markets closed mostly higher on Tuesday following the broadly positive cues from global markets overnight, as traders picked up stocks at reduced levels after last week’s weakness. In Hong Kong, the Hang Seng index fell 1.23%, and the Hang Seng Tech index fell 1%. The Shenzhen Component in mainland China fell fractionally and the Shanghai Composite shed 0.14%.[0] The Taiwan Weighted, KOSPI, and Hang Seng indices, all largely composed of tech-related stocks, dropped between 0.3% and 0.6%.
On Wednesday, Asian markets were mostly higher after Federal Reserve Chair Jerome Powell struck a less hawkish tone than feared during a recent speech. The Nikkei in Japan dropped due to a number of poor financial results.[1] The Japanese stock market was notably higher on Tuesday, recouping some of the losses in the previous session, with the Nikkei 225 falling below the 27,600 level, driven by gains in technology and financial stocks.
Wharton finance professor Jeremy Siegel believes that the Federal Reserve is still likely to cut interest rates later this year despite stubbornly high inflation.[0] The closely watched report on US consumer price inflation will be released later today, however, traders continue to remain cautious and are refraining from creating fresh long positions.[2]
0. “Asia Markets Set to Open Lower After U.S. Inflation Comes in Higher Than Expected” NBC 10 Philadelphia, 14 Feb. 2023, https://www.nbcphiladelphia.com/news/local/asia-markets-set-to-open-lower-after-u-s-inflation-comes-in-higher-than-expected/3500299
1. “Asia stocks rise as Powell touts disinflation, Nikkei hit by weak earnings By Investing.com” Investing.com, 8 Feb. 2023, https://www.investing.com/news/stock-market-news/asia-stocks-rise-as-powell-touts-disinflation-nikkei-hit-by-weak-earnings-2997670
2. “Asian Markets Track Global Markets Higher” RTTNews, 14 Feb. 2023, https://www.rttnews.com/3343795/asian-markets-track-global-markets-higher.aspx