Asia Markets Rise as Investors Digest China Inflation, Ignore Weak U.S. Retail Data

Asia-Pacific markets traded mostly higher on Wednesday as investors focused on economic developments in China, shrugging off weaker-than-expected U.S. retail sales. The positive momentum in the region comes amid broader concerns about artificial intelligence impacting Wall Street, yet sentiment remained resilient across key Asian hubs.

Investors closely watched China’s January inflation data, which revealed a 0.2% rise in the consumer price index compared with the previous year—falling short of the 0.4% forecast by economists in a Reuters poll. The softer-than-expected increase underscores persistent deflationary pressures and highlights the ongoing challenges facing the world’s second-largest economy in sustaining growth without additional stimulus.

In Australia, the S&P/ASX 200 jumped 1.43%, reflecting steady gains across multiple sectors. South Korea’s Kospi advanced 0.6%, marking its third consecutive day of upward momentum, while the Kosdaq small-cap index rose 0.55%. Meanwhile, Hong Kong’s Hang Seng Index inched up 0.13%, even as mainland China’s CSI 300 slipped 0.26%, showing mixed performance across the region.

Japan’s markets remained closed for a public holiday, limiting activity in one of Asia’s largest economies. Investors were nonetheless encouraged by resilience in other regional markets, which absorbed global economic shocks while awaiting further cues from both U.S. and Chinese economic indicators.

Overnight in the U.S., broader indexes were pressured by AI-related concerns, with the S&P 500 falling 0.33% and the Nasdaq Composite slipping 0.59%. The Dow Jones Industrial Average, however, bucked the trend, rising 0.1% to close at a record 50,188.14, its third consecutive intraday record, signaling ongoing optimism in blue-chip U.S. stocks despite mixed economic signals.

source: cnbc