Asian Tech Stocks Rally Amid New AI Competition

Asian-Pacific markets saw gains led by technology stocks, following Wall Street's rise, amidst investor optimism over a new Chinese AI model. U.S. dollar remained strong as traders returned to it due to fresh tariff alerts from the Trump administration.

Technology stocks spearheaded a rally in the Asia-Pacific markets on Wednesday, buoyed by overnight gains on Wall Street. Investors regained confidence, despite concerns over a new low-cost AI model from China challenging U.S. supremacy in the industry.

Lunar New Year holidays resulted in thinner trading in Asia, closing markets in China, Hong Kong, Taiwan, Singapore, and South Korea. Japan's Nikkei index rose by 0.5%, breaking a three-day decline streak, while Australia's stock benchmark saw a 0.8% increase driven by an upswing in tech shares.

Expectations are now focused on upcoming mega-cap tech earnings from Meta, Microsoft, and Tesla. Meanwhile, the Federal Reserve's policy decision holds Wall Street's attention, amidst fluctuating currency values and stable oil prices.

(With inputs from agencies.)