Mixed performance in Asia-Pacific markets amid tech-driven rally dissipation

The mixed performance in the Asia-Pacific region mirrored the mixed closing on Wall Street overnight. Tech giants such as Nvidia, Meta (formerly Facebook), and Apple saw declines, with the S&P 500 closing 0.19% lower and the Nasdaq Composite losing 0.54%. In contrast, the Dow Jones Industrial Average managed to edge higher by 0.1%.

On Thursday, Asia-Pacific markets experienced a mixed performance following the dissipation of Wall Street’s tech-fueled rally. Investor attention was primarily focused on Japan’s spring wage negotiations and India’s wholesale inflation data, which influenced market sentiment across the region.

In Japan, wage negotiations concluded on Wednesday, with reports from local outlets suggesting significant wage hikes offered by large firms. The first overall estimate of these negotiations is anticipated on Friday. Strong wage increases could potentially pave the way for the Bank of Japan to consider unwinding its ultra-easy monetary policy, with the central bank scheduled to meet next Monday and Tuesday. Despite initial losses, Japan’s Nikkei 225 managed to reverse course, posting a modest gain of 0.29%, while the broader Topix index saw a slightly larger increase of 0.30%. Defensive utilities stocks led gains as investors remained cautious amid ongoing uncertainties.

South Korea’s Kospi index recorded a solid climb of 0.94% to reach 2,718.76, although the Kosdaq index slipped by 0.27%, ending a four-day winning streak. Hong Kong’s Hang Seng index experienced volatility throughout the day, ultimately closing down by 0.83% after an earlier climb. Meanwhile, mainland China’s CSI 300 index finished the day with a modest decline of 0.28% at 3,562.22.

In Australia, the S&P/ASX 200 index ended the day 0.2% lower, despite a rally among miners supported by the continued strength in gold prices.

The mixed performance in the Asia-Pacific region mirrored the mixed closing on Wall Street overnight. Tech giants such as Nvidia, Meta (formerly Facebook), and Apple saw declines, with the S&P 500 closing 0.19% lower and the Nasdaq Composite losing 0.54%. In contrast, the Dow Jones Industrial Average managed to edge higher by 0.1%.

Overall, the markets remained cautious amid ongoing economic uncertainties and fluctuations in global inflation data, with investor sentiment influenced by developments in key economic indicators and monetary policy decisions.