Asian stock markets moved higher on Wednesday, led by a rebound in Japanese technology shares, even as lingering concerns over artificial intelligence continued to weigh on the broader tech sector. Trading activity across the region remained relatively subdued, with major markets in China, Hong Kong, South Korea, and Singapore closed for the Lunar New Year holiday.
Investor sentiment improved after Wall Street posted modest overnight gains, offering positive cues to Asian equities. However, caution persisted ahead of key U.S. economic data releases. Market participants are closely watching the minutes from the Federal Reserve’s January meeting, along with the upcoming Personal Consumption Expenditures (PCE) price index report, the Fed’s preferred inflation measure. S&P 500 futures were largely flat in late trading, reflecting a wait-and-see approach.
Japan’s Nikkei 225 climbed 1.1%, while the TOPIX index advanced 1.4%, recovering from sharp losses earlier in the week. Technology stocks led the rebound after suffering weeks of declines amid global AI-driven volatility. Bargain hunting also supported broader Japanese equities following disappointing fourth-quarter GDP data. Meanwhile, stronger-than-expected January trade figures provided additional support, as exports surged beyond forecasts. Despite the export strength, imports unexpectedly declined, and Japan recorded a monthly trade deficit.
In Australia, the ASX 200 gained 0.4%, extending the previous session’s rise. CSL Ltd edged higher following a licensing agreement with Eli Lilly, while BHP Group retreated from record highs despite robust first-half earnings. Santos and Suncorp also declined after weaker financial results. Australian wage price index data showed steady income growth in the December quarter, reinforcing economic resilience but raising concerns about persistent inflation.
India’s Nifty 50 remained mostly unchanged in early trading. Major IT stocks such as Infosys, Wipro, and HCLTech continued to face pressure amid fears that rapid advancements in AI software and tools, including new releases from Anthropic, could disrupt traditional software services and reduce market share.


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