This is CNBC's live blog covering Asia-Pacific markets.
China and Hong Kong stocks surged on Tuesday as authorities in the world's second-largest economy took measures to arrest a recent sell-off in its equities, while most Asia-Pacific markets declined.
The CSI 300 index closed 3.48% higher at 3,311.69, and Hong Kong's Hang Seng index rose about 4% in the final hour of trading. Mainland China's CSI 300 had hit five-year lows last week.
According to a statement from the China's securities and regulatory commission, it would "guide institutional investors ... to enter the market with greater efforts." This comes at a time where a clear lack{
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China and Hong Kong stocks surge 2% as healthcare, tech firms gain
Mainland Chinese and Hong Kong equity benchmarks surged 2% on Tuesday, led by healthcare and tech stocks, respectively.
This comes after the Chinese regulators took measures to calm a recent sell-off in markets, including a statement from the country's securities and regulatory commission that said it would "guide institutional investors ... to enter the market with greater efforts."
Money Report
The largest mover on the CSI 300 was Beijing Wantai Biological Pharmacy Enterprise, which soared 10%, while the biggest gainer on the Hang Seng index was tech giant Alibaba, whose shares jumped 5.9%.
— Lim Hui Jie
The Reserve Bank of Australia left its official cash rate unchanged at 4.35%, as was expected. The S&P/ASX 200 extended losses from Monday, closing 0.6% lower at 7,581.60, while the Aussie dollar strengthened strengthened 0.5% against the U.S. dollar.
In Japan, household spending dipped more than expected in December, falling 2.5% year on year compared with the 2.1% expected by economists polled by Reuters.
The average monthly income per household for December stood at 1,099,805 yen, falling 4.4% in nominal terms and down 7.2% in real terms from the previous year.
The Bank of Japan has said sustainable wage increases are one of the prerequisites for unwinding its ultra-loose monetary policy.
Japan's Nikkei 225 slipped 0.5% to 36,160.66, while the Topix saw a larger loss of 0.7% to 2,539.25.
South Korea's Kospi ended 0.58% lower at 2,576.20, while the small-cap Kosdaq dipped 0.1% to 807.03.
Overnight in the U.S., all three major indexes lost ground as Treasury yields spiked higher on concerns the Federal Reserve might not cut rates as much as expected. Lackluster results from McDonald's also dampened investor sentiment.
The Dow Jones Industrial Average dropped 0.71%, while the S&P 500 retreated from its all-time high, slipping 0.32%. The Nasdaq Composite edged down 0.2%
— CNBC's Samantha Subin and Jesse Pound contributed to this report
China and Hong Kong stocks surge 2% as healthcare, tech firms gain
Mainland Chinese and Hong Kong equity benchmarks surged 2% on Tuesday, led by healthcare and tech stocks, respectively.
This comes after the Chinese regulators took measures to calm a recent sell-off in markets, including a statement from the country's securities and regulatory commission that said it would "guide institutional investors ... to enter the market with greater efforts."
The largest mover on the CSI 300 was Beijing Wantai Biological Pharmacy Enterprise, which soared 10%, while the biggest gainer on the Hang Seng index was tech giant Alibaba, whose shares jumped 5.9%.
— Lim Hui Jie
Australia's fourth-quarter retail sales inch up
Retail sales in Australia inched higher during the December quarter, according to latest government data.
Australian retail sales volumes rose 0.3% in the fourth quarter of 2023, higher than a 0.1% rise in the preceding quarter, and more than the 0.1% growth estimated in a Reuters poll.
"The rise in December retail sales volumes was supported by lower price growth for retail goods. Consumers particularly took advantage of discounting for discretionary items like furniture and electronic goods," said Ben Dorber, head of retail statistics at the Australian Bureau of Statistics.
"Removing the effects of strong population and price growth clearly shows how consumers have responded to cost-of-living pressures. Sales volumes per person have fallen every quarter since reaching a peak in June 2022, although they remain above pre-pandemic levels," Dorber added.
investors now await the policy decision from the Reserve Bank of Australia later in the day,{=null} where the central bank is expected to stand pat on interest rates.
— Shreyashi Sanyal
CNBC Pro: 'This stock could double': Fund manager loads up on shares of two banks amid the volatility
There are opportunities in the banking sector despite a rise in volatility and concern over steep losses at some lenders, according to fund manager Cole Smead.
The portfolio manager at Smead Capital said he was bullish on two banks even as the KBW Regional Banking Index lost more than 7% last week.
One of Smead's picks is a U.S. regional bank while the other is a former global systemically important bank.
CNBC Pro subscribers can read more here.
— Ganesh Rao
Reserve Bank of Australia is expected to hold rates, dovish pivot unlikely
The Reserve Bank of Australia is set to release its policy statement at the end of its two-day meeting on Tuesday.
Analysts expect the RBA to hold its official cash rate steady at 4.35%, with no expectations for a dovish pivot.
While inflation for the fourth quarter of 2023 cooled to a two-year low of 4.1%, it still remained well above the RBA's 2-3% target range, bolstering bets for a hold.
"While a dovish pivot is unlikely at this meeting, we expect changes in tone to address further traction from high rates, progress towards the CPI target and confirmation that rates have peaked," Helen Qiao, China & Asia economist at BofA Global Research wrote in a client note.
The S&P/ASX 200 extended losses from Monday, falling 0.9%, while the Aussie dollar dipped 0.06% against the U.S. dollar.
— Shreyashi Sanyal
CNBC Pro: Look beyond AI's near-term plays, Goldman says — naming long-term beneficiaries in and outside tech
Goldman said in a January report that investors should be focusing on long-term AI beneficiaries, as near-term ones are already well known and their performance already reflect the "consensus view."
Here are some names in its basket of long-term AI beneficiaries, and how much their baseline earnings could rise from AI.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Japan household spending falls more than expected in December, real wages slide
Household spending in Japan dipped more than expected in December, falling 2.5% year on year compared with the 2.1% estimated by economists polled by Reuters.
The decline was smaller than the 2.9% drop seen in November, with the average monthly expenditure per household at 329,518 yen ($2,217.11).
The average monthly income per household stood at 1,099,805 yen, falling 4.4% in nominal terms and down 7.2% in real terms from the previous year.
These numbers play into monetary policy considerations for the Bank of Japan, as the BOJ has said sustainable wage increases are one of the prerequisites for unwinding its ultra-loose monetary policy.
— Lim Hui Jie
Oil prices settle higher after U.S. strikes in Middle East
Oil prices settled higher Monday after U.S. retaliatory strikes against Iranian forces and allied militias over weekend.
The West Texas Intermediate contract for March rose 50 cents, or 0.69%, to settle at $72.78 a barrel. The Brent contract for April gained 66 cents, or 0.85%, to settle at $77.99 a barrel.
The U.S. launched airstrikes late Friday against Iran's Islamic Revolutionary Guard Corps and allied militias in Iraq and Syria. The airstrikes, which hit more than 85 targets, came in response to the deaths of three U.S. troops in a drone strike by Iran-allied militants.
— Spencer Kimball
Market eases expectations for Fed rate cuts
Traders have tempered their expectations for a bit for interest rate cuts following cautionary statements from Federal Reserve officials.
The probability of a previously much-anticipated March cut tumbled to just 14.5% Monday morning, according to the CME Group's FedWatch gauge. The expectation had been above 80% just two weeks or so ago.
For the full year, the market has switched from expecting six cuts to five and was even assigning about a 44.6% probability that the total could fall to four.
Those moves follow an interview Fed Chair Jerome Powell gave to "60 Minutes." The interview aired Sunday and featured Powell not only casting doubt on a March cut but also backing the view, as expressed in the central bank's December "dot plot," of just three cuts this year.
— Jeff Cox
Boeing shares fall on more 737 Max 9 woes
Shares of Boeing declined around 1.7% Monday after the company said it would rework 50 undelivered 737 Max jets following the discovery of misdrilled holes on some fuselages. The rework could potentially result in delays to near-term deliveries.
The news comes amid a period of intense scrutiny for the company after the fallout from the midflight Alaska Airlines accident on a 737 Max 9.
The stock is down 21% in 2024.
— Hakyung Kim
Stick to quality stocks, especially in U.S. tech, UBS says
UBS said investors should stick with quality stocks, especially in U.S. tech. The Wall Street firm, which anticipates a soft landing scenario in its base case, says these companies can weather a slowdown in economic growth.
"In equities, we continue to see quality stocks as a core holding for investors. History shows they tend to outperform in periods of slowing economic growth, as we expect in our base case," read a Monday note from the firm's chief investment office for global wealth management.
"We keep a most preferred stance on the US IT sector, home to many quality stocks. By also complementing core holdings in quality stocks with tactical exposure to small caps, investors should be well positioned to capture more upside if markets continue to move higher," the note continued.
— Sarah Min