Asian stocks dip as Japan sees profit-taking; Alibaba fuels HK tech rally
Investing.com-- Most Asian stocks retreated on Wednesday as mixed signals from the Bank of Japan spurred some profit-taking in Japanese markets, while Hong Kong stocks rebounded sharply on a tech-fueled rally led by Alibaba Group.
A rout in Chinese stocks appeared to have resumed, with the Shanghai Shenzhen CSI 300 and Shanghai Composite indexes falling 0.7% and 0.4%, respectively. The two indexes had recovered marginally from five and four-year lows on Tuesday following a report that the Chinese government was planning a 2 trillion yuan ($278 billion) support package for local stocks.
But sentiment towards China remained weak amid persistent concerns over a slowing post-COVID economic rebound.
Broader Asian markets were skittish as traders remained on edge over higher-for-longer U.S. interest rates, especially ahead of key economic readings and major tech earnings due later this week. But a series of record-high finishes on Wall Street limited any major losses.
Australia’s ASX 200 was flat, tracking a muted performance in oil and gas giant Woodside Energy Ltd (ASX:WDS) after the firm clocked a smaller-than-expected revenue increase in the December quarter.
Broader Australian stocks also saw some profit-taking, with the ASX remaining within sight of a record high.
South Korea’s KOSPI fell 0.3%, while futures for India’s Nifty 50 index pointed to a muted open, after Indian stocks were hit with a heavy degree of profit-taking in recent sessions.
Japan’s Nikkei 225 and TOPIX indexes fell 0.7% and 0.5%, respectively, leading losses in Asia as investors locked-in profits from the two recently touching 34-year highs.
Sentiment towards Japan was also muddled by mixed signals from the BOJ. While the central bank largely
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