Asian stocks rose on Wednesday, buoyed by confidence in Chinese market policies, as investors are also keeping an eye on Nvidia’s earnings after a global rally driven by artificial intelligence, Reuters reported.
Financial markets will be watching for the minutes of the Federal Reserve’s last meeting in January for insights into the policy outlook, as expectations of early U.S. interest rate cuts fade due to persistent inflation data.
The MSCI Asia-Pacific index, excluding Japan, rose by 0.62 per cent on Wednesday, reaching its highest level in seven weeks. This was driven by strong performances in Chinese and Hong Kong stocks.
The blue-chip CSI300 index rose by 1.8 per cent, and the Hang Seng Index surged by three per cent after China’s benchmark mortgage rate was significantly reduced, in an attempt to enhance the property market.
Jian Shi Cortesi, Investment Director at GAM Investments, pointed out that regulators are proceeding cautiously and gradually, with the possibility of further measures if needed.
In Japan, Tokyo’s Nikkei closed down 0.26 per cent, showing signs of nervousness ahead of Nvidia earnings and struggling to reach the all-time high set in 1989.
Nvidia’s stock fell by four per cent on Tuesday, causing Nasdaq to open nearly one per cent lower. Nasdaq futures dropped by 0.26 per cent, while S&P 500 futures eased by 0.14 per cent.
In Europe, the Eurostoxx 50 futures were up by 0.02 per cent, German DAX futures were down by 0.04 per cent, and FTSE futures were 0.14 per cent lower. The European benchmark stock index is close to its two-year high and is aiming to reach the record high set in January 2022.
