Asian stocks traded in a tight range Wednesday as China’s markets pulled back after a stimulus-driven rally, while Japan’s Nikkei 225 and TOPIX advanced 0.7% and 0.8%, respectively, ahead of the Bank of Japan’s (BOJ) rate decision. The BOJ is expected to hold rates steady after its January hike but may adopt a hawkish stance amid persistent inflation and wage growth expectations, with markets pricing in another hike by May.
Despite a weak Wall Street lead, Asian markets found support from continued optimism over China’s economic stimulus and AI sector growth. However, China's Shanghai Composite and CSI 300 indexes dipped 0.3%, along with Hong Kong’s Hang Seng, which recently hit a three-year high. Tech giant Xiaomi surged nearly 2% on strong earnings and rising electric vehicle sales targets.
Elsewhere, South Korea’s KOSPI gained 0.7%, shrugging off political uncertainty ahead of a ruling on President Yoon Suk Yeol’s impeachment. SK Hynix, a key supplier for NVIDIA, climbed 1% after shipping advanced memory chip samples. Singapore’s Straits Times index rose 0.4%, while Australia’s ASX 200 edged lower. Indian Nifty 50 futures pointed to a positive open, rebounding from recent losses.
Investors remained cautious over potential U.S. trade tariffs and ongoing Russia-Ukraine peace talks, while U.S. stock futures inched higher ahead of the Federal Reserve’s interest rate decision, where no change is expected.
Asian markets continue to navigate global economic uncertainty, with China’s stimulus efforts and Japan’s monetary policy playing key roles in shaping regional sentiment.


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