SINGAPORE- Chinese markets lifted Asian stocks on Wednesday on optimism over steps taken by policymakers to boost confidence, while looming earnings from Nvidia kept investors on edge following the recent frenzied AI-driven global rally.
Financial markets will also look out for the minutes of the Federal Reserve’s last meeting in January for further clues on the policy outlook as expectations of early US interest rate cuts dissipate in the wake of sticky inflation data.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.62 percent on Wednesday, touching their highest in seven weeks, with stocks in China and Hong Kong providing the biggest boost.
The blue-chip CSI300 index rallied 1.8 percent , while Hong Kong’s Hang Seng Index surged 3 percent , a day after the biggest ever reduction in the nation’s benchmark mortgage rate as authorities stepped up efforts to prop up the struggling property market.
“Regulators are cautious and taking a gradual approach, with the possibility of introducing further measures if needed,” said Jian Shi Cortesi, Investment Director, Asia/China Growth Equities of GAM Investments.
“The market sentiment has improved slightly, but the sustainability relies more on improvements in economic activities and corporate earnings.”
China’s stock exchanges on Tuesday said major quant fund Lingjun Investment had broken rules on orderly trading and barred it from buying and selling for three days, as part of wider regulatory measures to revive market confidence.
Over in Japan, Tokyo’s Nikkei closed down 0.26 percent , having stuttered in the last few days within sight of the all-time high set in 1989, as nervousness ahead of Nvidia earnings grip investors.
Nvidia stumbled on Tuesday, dropping 4 percent and pushing the tech-heavy Nasdaq nearly 1 percent lower. Nasdaq futures were 0.26 percent lower, while futures for the S&P 500 eased 0.14 percent .
European bourses are set for a subdued start, with Eurostoxx 50 futures up 0.02 percent , German DAX futures down 0.04 percent and FTSE futures 0.14 percent lower.
Europe’s benchmark stock index remains near its highest in two years and is eyeing the record high touched in January 2022.
On the monetary policy front, traders will get a chance to assess minutes of the Federal Reserve’s last meeting later in the day for any further clues on when the US central bank will start its easing cycle.
