This is CNBC’s live blog covering Asia-Pacific markets.
Asia-Pacific markets traded mixed Wednesday, as two key Wall Street benchmarks fell overnight after the U.S. consumer confidence reading came in much weaker than economists’ estimates.
Hong Kong’s Hang Seng index climbed 3.63% in its last hour of trade. Gains were led by the consumer and technology sectors as the city pledged in its budget announcement today to develop itself into an artificial intelligence hub, allocating 1 billion Hong Kong dollars toward AI research and development.
The Hang Seng Tech index surged 5.25% in its last hour, on the back of a sharp rise in JD.com (9.03%), Xpeng (9.34%), Alibaba (6.05%) and Meituan (10.47%).
Japan’s benchmark Nikkei 225 and Topix were in negative territory for the second consecutive day. The Nikkei 225 lost 0.25% to close at 38,142.37, while the broader Topix index fell 0.30% to end the day at 2,716.40.
South Korea’s Kospi closed 0.41% higher at 2,641.09 while the small-cap Kosdaq advanced 0.26% to close at 771.41.
Mainland China’s CSI300 index ended the day 0.87% higher at 3,959.94.
Australia’s S&P/ASX 200 fell 0.14% to end the day at 8,240.70. This is its second consecutive day in negative territory.
The country’s weighted consumer price index rose 2.5% year on year in January, same as the month before. The reading was in line with Reuters estimates.
Overnight in the U.S., stocks slid on investor concerns over economic growth and global trade.
The broad-based S&P 500 fell for a fourth consecutive session, slipping 0.47%, to close at 5,955.25.
The Nasdaq Composite dropped 1.35% to end the day at 19,026.39. The tech-heavy index’s decline was led by a 2.8% in drop in chipmaker Nvidia‘s shares.
The Dow Jones Industrial Average, however, climbed 159.95 points, or 0.37%, to close at 43,621.16.
Investors sought safety in the U.S. bond market, with the benchmark 10-year Treasury yield dropping below 4.3% to hit their lowest level since December.
— CNBC’s Hakyung Kim and Sean Conlon contributed to this report.
Xpeng and Li Auto shares rally after Tesla stock plummets over 8%
Shares in Chinese electric vehicle manufacturers Xpeng and Li Auto rallied Wednesday after Tesla stock nosedived more than 8% overnight.
Xpeng’s shares climbed as much as 7.33%, while Li Auto rose as much as 5.34%.
The gains in Li Auto also follow the reported launch of its first all-electric sport utility vehicle on Tuesday. The pricing for the new model – called Li i8 – has yet to be announced, the report added.
Xiaomi shares also gained 4.14% while BYD — which is widely seen as Tesla’s closest rival — was trading flat.
Shares in Elon Musk’s Tesla took a hit with its market cap dropping below $1 trillion to its lowest since November after a Reuters report noted that owners were disappointed by upgrades to its partially automated driving systems.
— Amala Balakrishner
Xpeng and Li Auto shares rally after Tesla stock plummets over 8%
Shares in Chinese electric vehicle manufacturers Xpeng and Li Auto rallied Wednesday after Tesla stock nosedived more than 8% overnight.
Xpeng’s shares climbed as much as 7.33%, while Li Auto rose as much as 5.34%.
The gains in Li Auto also follow the reported launch of its first all-electric sport utility vehicle on Tuesday. The pricing for the new model – called Li i8 – has yet to be announced, the report added.
Xiaomi shares also gained 4.14% while BYD — which is widely seen as Tesla’s closest rival — was trading flat.
Shares in Elon Musk’s Tesla took a hit with its market cap dropping below $1 trillion to its lowest since November after a Reuters report noted that owners were disappointed by upgrades to its partially automated driving systems.
— Amala Balakrishner
‘Cost control is the key word,’ in Hong Kong budget, ANZ’s greater China economist says
Hong Kong’s annual budget for 2025-2026 will be tabled in the parliament later in the day.
Financial Secretary Paul Chan had reportedly said that the government will be “focusing on cost-saving measures” to spur its economy, Reuters noted.
The same report quoted Chan saying that the Asian financial hub’s projected deficit for the current fiscal year ending in March is expected to be just below $100 billion Hong Kong dollars ($12.9 billion).
Raymond Yeung, greater China economist at ANZ Bank says the Hong Kong government will “run a fiscal deficit, not just this year [but] next year as well.”
He believes Chan’s focus will be on keeping costs under control, rather than “trying to increase revenue by taxing more.”
“Cost control is the key word. Bond issuing is also a key word to finance the capital expansion. I think this is the new normal of the Hong Kong government,” he told CNBC’s Squawk Box Asia Wednesday.
“I think the financial secretary [will] want to position the city [and] continue to be business friendly, and don’t really want to raise any tax,” Yeung added.
His comments come as Hong Kong’s economy grew 2.5% in 2024, slower than the 3.2% logged in 2023. Its outlook is now marred by heightened uncertainties and disruptions to global trade flows.
Looking ahead, Yeung said he expects the financial hub’s economy to expand 2.7% this year on the back of a stronger stock market.
— Amala Balakrishner
Australia inflation rose 2.5% in January, in line with estimates
Australia’s consumer price index rose 2.5% in the 12 months to January, data from the Australian Bureau of Statistics showed Wednesday.
The top contributors to the annual inflation rise were food and beverages, housing, alcohol and tobacco, according to the release, while a fall in electricity prices partly offset the increase.
The monthly inflation rate — which mirrored December’s increase — was in line with Reuters poll estimates.
Last week, the central bank cut its benchmark interest rates by 25 basis points to 4.10%, marking its first easing in more than four years.
— Anniek Bao
Palantir shares off their recent high by 30%
Palantir shares are more than 30% off their recent high, as the onetime retail favorite continues its recent slide.
The stock fell 15% just last week, after the defense company disclosed a new stock sale plan from CEO Alex Karp. A plan to cut defense budgets, as reported by The Washington Post, also spooked investors.
Those developments rattled investors who had been piling into the stock, which was the S&P 500’s best performer in 2024, when it was up more than 340%. In 2025, it was up more than 14%.
On Tuesday, the stock was last lower by about 4%.
— Sarah Min
‘Magnificent Seven’ underwhelms
The “Magnificent Seven” is looking more like the “Mediocre Seven.”
The group is trading 3% lower on Tuesday, pacing for its fourth straight negative session and its worst day since Dec. 18, 2024, when it fell 4.3%.
The group of megacap tech stocks is trading more than 12% below its 52-week high from mid-December.
Within the seven stocks, Apple is the only name trading within 10% of its 52-week high.
— Nicholas Wells
