©Reuters.
Investing.com — Most Asian stocks fell on Wednesday as mixed signals from the Bank of Japan prompted profit-taking in the Japanese market, while Hong Kong stocks rebounded sharply with tech-led gains. alibaba group.
The decline in Chinese stocks appears to have resumed, with the indexes down 0.7% and 0.4%, respectively. Both indexes rebounded slightly from their five- and four-year lows on Tuesday after reports that the Chinese government was planning a 2 trillion yuan ($278 billion) support package for domestic stocks.
However, sentiment toward China remains weak amid persistent concerns about a slowing economic recovery after the coronavirus outbreak.
Markets across Asia were volatile, with traders nervous about a prolonged period of high U.S. interest rates, especially ahead of major economic data and major tech company earnings scheduled later this week. But a series of record highs on Wall Street limited the big losses.
Australia's performance was flat after oil and gas giant Woodside Energy (ASX:) posted weaker-than-expected revenue growth in the December quarter.
Profit-taking has also been seen across Australian equities, with the ASX continuing to set its sights on record highs.
South Korean stocks fell 0.3% and Indian index futures suggested subdued trading after Indian stocks suffered heavy profit-taking in recent trading.
Japanese stocks fall amid mixed signals from profit taking and the Bank of Japan
Japan and the index led losses in Asia, down 0.7% and 0.5%, respectively, as investors locked in profits from the two stocks, which recently hit 34-year highs.
Sentiment toward Japan was also confused by mixed signals from the Bank of Japan. The central bank largely concluded its two-day meeting on Tuesday, but Governor Kazuo Ueda signaled further progress toward an eventual end to Japan's negative interest rates.
Ueda said the Bank of Japan would still maintain accommodative policy even after lowering interest rates from record lows. However, the central bank's change in stance signals an end to the ultra-accommodative conditions Japanese markets have enjoyed for nearly a decade.
The dovish Bank of Japan has been the main driver of Japan's recent rise in stock prices, with the Nikkei stock average rising more than 30% in 2023.
Hong Kong recovers as Alibaba spurs tech rally
Hong Kong's index was an outlier on the day, rising 1.3% as large tech stocks rose. Alibaba Group (HK:) (NYSE:) leads the charge, with co-founders Jack Ma and Joe Tsai buying a combined $200 million worth of shares in the e-commerce giant through the fourth quarter The stock price rose 5% on the news that
The report sent Alibaba's Hong Kong shares rebounding for the first time in 15 months and also helped lift the Hang Seng's broader tech stocks.
peer Baidu Inc (HK:) (NASDAQ:) and Tencent Holdings Ltd (HK:), which together with Alibaba make up China's BAT trio, rose 4.9% and 1.4%, respectively.
Still, sentiment towards China, the main driver of the Hong Kong market, remains subdued, with the Hang Seng trading near a 15-month low.
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