Asian Shares Rise As China’s Tech Selloff Eases

Asian stocks were mostly higher on Wednesday as Chinese tech shares rebounded after a steep sell-off over the previous three sessions.

A cautious undertone prevailed as investors monitor the peace talks between Russia and Ukraine and await the U.S. Federal Reserve’s latest policy decision.

Ukrainian President said that the positions of Ukraine and Russia at peace talks were sounding more realistic but more time was needed.

Mykhailo Podolyak, an adviser to Ukrainian President Volodymyr Zelenskiy, tweeted that the negotiations are “difficult” but there is room for compromise.

However, Russian President Vladimir Putin accused Ukraine’s leadership of not being “serious” about resolving the conflict.

The Fed is certain to raise rates by 25 basis points later today, but a larger hike cannot be ruled out amid skyrocketing inflation.

The Bank of England unveils its policy decision on Thursday, with the Bank of Japan following a day later.

Chinese shares were marginally higher as technology stocks rebounded from a recent selloff on fears of a regulatory crackdown and China’s ties to Russia. Hong Kong’s Hang Seng index was up more than 2 percent after Tuesday’s rout.

Japan’s Nikkei index climbed 1.7 percent after data showed the country’s exports increased in February for the 12th consecutive month.

Australia’s benchmark S&P/ASX 200 rose about 1 percent, New Zealand’s NZX-50 index was up 0.6 percent and South Korea’s Kospi gained 0.7 percent.

The dollar held near a five-year peak versus the yen while gold edged up slightly, after having fallen over 1 percent to its lowest level since early March the previous day. Oil prices rose after settling below $100 a barrel on Tuesday for the first time since late February.

U.S. stocks rallied overnight as oil and industrial and agricultural commodity prices continued to fall, and a report showed producer prices moderated in February, helping ease fears of inflation and a broad economic slowdown.

The Dow surged 1.8 percent, the tech-heavy Nasdaq Composite jumped 2.9 percent and the S&P 500 climbed 2.1 percent.

European stocks ended slightly lower on Tuesday amid concerns about the impact of Covid-19 resurgence in China and the country’s support for Russia in the Ukrainian invasion.

The pan European Stoxx 600 dipped 0.3 percent. The German DAX slipped 0.1 percent, France’s CAC 40 index edged down 0.2 percent and the U.K.’s FTSE 100 eased 0.3 percent.

Market Analysis