Asia report: Japan, Aussie stocks rise on quiet day for region

(Sharecast News) - Stocks in Japan and Australia advanced on a quiet Wednesday for the Asia-Pacific region, recovering from losses in the previous session, as Wall Street staged a sharp rebound overnight.

Most regional markets, including China, Hong Kong, South Korea, and Taiwan, remained closed for the Lunar New Year holiday.

"Asian stocks and European equity futures are on the rise, following a tech-led recovery on Wall Street post a market downturn that had unsettled global markets," said Patrick Munnelly at TickMill.

"Investors are now shifting their focus towards the upcoming Federal Reserve interest rate decision and earnings reports from prominent US companies Tesla, Meta and Microsoft.

"Japanese, Australian, and Indian markets have observed gains, while many other key markets in the region are closed for the Lunar New Year holiday."

Munnelly noted that US futures were holding steady as the S&P 500 climbed and the Nasdaq 100 surged 1.6% on Tuesday, with Nvidia making an impressive 8.9% recovery following its historic single-day value drop.

"Shares have rebounded after a turbulent start to the week, attributed to concerns surrounding the budget-friendly AI model from Chinese startup DeepSeek, the potential over-investment in AI development by leading US firms in light of DeepSeek's cost-efficient approach sparked a surge in selling.

"Attention turns towards the Fed's decision and results from major tech companies starting Wednesday."

Markets in the green, most of the region closed for holiday

Japan's Nikkei 225 gained 1.02% to close at 39,414.78, while the broader Topix rose 0.68% to 2,775.59.

Semiconductor-related stocks led gains, with Renesas Electronics surging 5.85%, Dainippon Screen Manufacturing up 4.61%, and Advantest climbing 4.36%.

Australia's S&P/ASX 200 added 0.57% to end at 8,447.00, supported by gains in energy and healthcare stocks.

Mercury NZ led the index with a 7.69% jump, followed by Mesoblast, which advanced 5.54%, and Emerald Resources, up 4.85%.

In New Zealand, the S&P/NZX 50 edged up 0.35% to 13,003.04, with Port of Tauranga, Mercury NZ, and Spark New Zealand posting gains of 1.89%, 1.83%, and 1.73%, respectively.

In currency markets, the dollar was last down 0.12% on the yen, trading at 155.36, while it rose 0.43% against the Aussie to AUD 1.6061, and advanced 0.37% against the Kiwi, changing hands at NZD 1.7712.

Oil prices declined, with Brent crude futures last down 0.9% on ICE at $76.79 per barrel, and the NYMEX quote for West Texas Intermediate down 0.85% at $73.14.

BoJ members discuss neutral interest rates, inflation slows in Australia

In economic news, minutes from the Bank of Japan's December meeting were released on Wednesday, revealing discussions on neutral interest rates as policymakers assessed how far borrowing costs should rise.

With inflation remaining above the 2% target and wage growth accelerating due to labour shortages, the central bank had been weighing its next steps.

Last week, the BoJ raised interest rates by 25 basis points to 0.5%, marking its highest level since 2008.

Elsewhere, inflation in Australia slowed in the December quarter, rising 0.2% from the prior three months and 2.4% year-on-year, according to data from the Australian Bureau of Statistics.

The annual figure came in below the 2.5% forecast by economists surveyed by Reuters, suggesting price pressures could be easing.

Reporting by Josh White for Sharecast.com.