Investing.com-- Most Asian stocks rose on Wednesday, led by a rally in Hong Kong’s tech sector amid growing AI optimism, while gains across other regional indices remained subdued ahead of a key U.S. inflation report.
U.S. stock index futures held steady during Asian trading hours as investors assessed Federal Reserve Chair Jerome Powell’s remarks on interest rates ahead of key inflation data due later in the day.
Hong Kong’s Hang Seng index rose more than 2% on Wednesday, sharply higher than other regional stock indices as Chinese tech, and electric vehicle (EV) stocks surged amid AI hype.
Hong Kong-listed Alibaba (NYSE: BABA ) Group (HK: 9988 ) shares jumped more than 8% to hit a four-month high on reports of a strategic partnership with Apple Inc (NASDAQ: AAPL ) to develop artificial intelligence (AI) features for iPhones in China.
EV manufacturer BYD Co (HK: 1211 ) shares climbed 5.5% after reaching a record high on Tuesday, when the company announced plans to equip its models with advanced driver-assistance systems.
Other Hong Kong-listed Chinese tech stocks were buoyed by optimism around domestic AI breakthroughs from DeepSeek.
Tencent Holdings Ltd (HK: 0700 ) shares gained 2.2%, while Xiaomi (OTC: XIACF ) Corp (HK: 1810 ) stock advanced 4% to a fresh record high level of HK$44.55 on Wednesday.
In mainland China, the Shanghai Composite index inched 0.2% higher, while the Shanghai Shenzhen CSI 300 index was largely unchanged.
Asian markets traded cautiously as investors awaited the release of U.S. consumer inflation data, which is expected to offer fresh clues on the Fed’s interest rate trajectory.
Meanwhile, Fed Chair Jerome Powell said that the economy was in a good place and the central bank was in no hurry to reduce interest rates.
Investors were also wary of escalating trade tensions sparked by U.S. tariffs, which threatened to slow economic growth and disrupt supply chains across key industries.
Japan’s Nikkei 225 edged 0.2% higher after returning from a holiday, while TOPIX fell 0.3%.
South Korea’s KOSPI ticked up 0.2%, while Indonesia’s Jakarta Stock Exchange Composite rose 0.9%.
The Philippine’s PSEi Composite index was marginally higher, while Singapore's Straits Times Index was largely unchanged
India's Nifty 50 edged 0.2% lower at open, while Australia's S&P/ASX 200 index was up 0.3%.