Asian stocks dip on economic jitters, tech buoyed by strong results

Investing.com– Most Asian stocks fell on Wednesday amid persistent fears of an economic slowdown this year, although technology-heavy indexes were aided by consensus-beating results from major U.S. firms. 

Hong Kong’s index was the sole outlier for the day, rising 0.7% on gains in U.S.-exposed technology stocks such as Alibaba Group Holding Ltd (HK:) (NYSE:) and Baidu Inc (HK:) (NASDAQ:). 

While , first quarter results from Microsoft Corporation (NASDAQ:) and Alphabet Inc (NASDAQ:), released after the bell, beat market expectations. 

The two stocks , as the results highlighted less pressure on mega-cap technology earnings from rising interest rates and high inflation. 

Other technology-heavy Asian indexes also saw relatively lower losses, with South Korea’s trading flat, while the index lost 0.3%. India’s and indexes were also flat in early trade, aided by strength in heavyweight technology stocks.

But broader Asian markets fell on Wednesday as growing fears of a U.S. recession this year largely eroded sentiment towards risk-driven markets. Fears of a banking crisis were also revived by soft results from First Republic Bank (NYSE:), which flagged plummeting deposit levels.

Focus is now on due on Thursday, which is expected to show that growth slowed in the first quarter.

Risk-heavy Southeast Asian markets fell the most, with Thailand’s and the down 1.1% and 0.8%, respectively.

China’s and indexes fell 0.2% and 0.3%, respectively, amid continued concerns over an uneven economic recovery in the country. Focus is now on data on , due on Thursday to gauge the state of the manufacturing sector, which has struggled to recover despite the lifting of anti-COVID measures. 

Australia’s fell 0.1%, as showed that price pressures remained sticky in the first quarter of the year- a trend that could invite more interest rate hikes by the Reserve Bank. 

Japan’s index fell 0.7%, although the index fared much better than its Asian peers this week as Bank of Japan Governor Kauzo Ueda reiterated his intention to keep policy uitra-loose in the near-term.

Focus is now on an , as well as a on Friday to gauge when the central bank could begin tightening policy later this year.