Technology stocks led gains in Asia-Pacific markets on Wednesday, mirroring Wall Street's rally as concerns eased over the emergence of a low-cost Chinese AI model. Investors reconsidered the impact of DeepSeek’s AI, suggesting it may lack the scalability to disrupt the industry while potentially boosting demand for GPUs.
Japan's Nikkei gained 0.5%, snapping a three-day losing streak. Australia's ASX 200 climbed 0.8%, with tech stocks surging 2.2%. U.S. futures dipped slightly after the S&P 500 and Nasdaq rose 0.9% and 2% overnight, rebounding from a previous 3% drop triggered by concerns over Nvidia’s valuation.
Investors are now eyeing earnings reports from Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Tesla (NASDAQ:TSLA), with questions surrounding AI-driven computing costs. The Federal Reserve's policy decision is also in focus, though rates are expected to remain unchanged.
The U.S. dollar stayed firm as traders rotated back from safe-haven currencies. The dollar index held at 107.91, while the yen weakened to 155.66 per dollar. The offshore yuan remained stable at 7.2763 per dollar. The Australian dollar dropped 0.4% to $0.6229 after weaker-than-expected inflation data raised rate cut expectations.
Oil prices held gains, with Brent crude at $77.47 per barrel and WTI at $73.82. Traders also monitored renewed U.S. tariff concerns after the White House reaffirmed plans for levies on Canada and Mexico, while weighing potential new tariffs on China.
Trading was thin due to Lunar New Year holidays in China, Hong Kong, Taiwan, Singapore, and South Korea.


UK Markets Face Rising Volatility as Hedge Funds Target Pound and Gilts
China’s Growth Faces Structural Challenges Amid Doubts Over Data
Why your retirement fund might soon include cryptocurrency
South Korea to End Short-Selling Ban as Financial Market Uncertainty Persists
Cleveland Fed President Warns of Ongoing Inflation Challenge
Wall Street Declines as Tariff Concerns Weigh on Markets
Saudi Arabia Warns Oil Prices Could Surge Past $180 a Barrel Amid U.S.-Israel-Iran Conflict
UK Economy Sees Marginal Growth Amid Tax Hikes and Business Caution
Asian Markets Rally on AI Optimism Ahead of Fed Decision
Stock Futures Slip as Amazon Tumbles on Weak Outlook, Eyes on Jobs Data
Japan's Parliament Backs Dovish BOJ Board Members, Raising Questions on Rate Hike Path
Investors Brace for Market Moves as Trump Begins Second Term
U.S. Stock Futures Rise as Trump Takes Office, Corporate Earnings Awaited
JPMorgan Posts Strong Q4 Revenue Growth Amid Market Rally
China Holds Lending Rates Steady Amid Global Oil Price Surge and Middle East Tensions
U.S. CPI Sparks Mixed Reactions, Shaping Fed Rate Cut Outlook 



