Technology stocks extend gains in Asia-Pacific markets

After seeing gains for a second day in a row, the Nasdaq Composite index caused mixed reactions in Asia-Pacific markets. Technology stocks helped the index avoid losses on Monday, as traders bet that inflation may be easing.
The Nikkei 225 rose 0.78% to close its session at 26,175.56 and the Topix gained 0.27% to 1,880.88 as consumer prices in Japan’s capital city rose 4% in December on an annualized basis, beating expectations for a 3.8% rise. The Japanese yen slightly weakened to 132.17 against the U.S. dollar, which reached a seven-month low earlier in the week.
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The S&P/ASX 200 fell 0.28% in Australia to close at 7,131. The Kospi struggled for direction and last traded marginally higher to close at 2,351.31.Investors were digesting South Korea's latest current account balance data from November, which showed a shift from a surplus to a deficit for the first time since August.
The Hang Seng index in Hong Kong fell in its final hour of trade. In mainland China, the Shanghai Composite also fell and the Shenzhen Component rose.
Jerry Liu, head of China internet research at UBS, told CNBC’s “Squawk Box Asia” Tuesday that he is optimistic about China’s internet sector this year. This comes after a top Chinese official told state media that China’s two-year tech crackdown could be coming to an end.
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UBS expects to see some expansion for Chinese Internet companies such as Alibaba, Tencent and Meituan, but analyst Liu says it will be limited.
According to conversations we've had with global investors, it seems that there are still some long-term concerns about the geopolitical and regulatory environment. This puts a limit on how much re-rating we can expect to see.
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"I do see a recovery this year, but compared to the past two years, we just don't have as much macro growth and online penetration to be had in the long run," he said.
Bain's report shows that online sales growth in China has slowed down in the first three quarters of 2022, with categories like personal care seeing a slight decline.
Steven Wieting, Chief Investment Strategist at Citi, expects a short and shallow recession to begin soon. However, he believes that the economy can recover by 2024.
As inflation decreases, some of the economic burdens are lifted, Wieting told CNBC.
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According to a recent wealth outlook report, it is likely that the US and other countries will experience a recession in 2023. This heightened uncertainty is expected to continue for the time being.
However, he believes that the economy will start to see signs of recovery even before 2023, citing that corporate earnings will start to make a substantial recovery over 2024 and 2025.

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According to investment bank Canaccord Genuity, shares of a U.K.-based lithium exploration and development firm could soar by nearly 600%. This would be a huge increase, and could make the company a major player in the lithium market.
Analysts at the bank say the stock has been "flying under the radar" since its 2022 IPO. They note that prices of battery-grade lithium carbonate have soared in recent years, and believe the stock is a good long-term investment.
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Stephane Bancel, CEO of Moderna, said that the company is in discussions with Chinese authorities about its vaccine.
Bancel stated that they have been in discussion with the Chinese government for some time now.
"We are actively engaged in discussions with the Chinese government and we are hopeful that something will come of it. However, ultimately it is up to the Chinese government to decide where this will land." This was said in an interview with CNBC's Sara Eisen and Meg Tirrell by an anonymous source.
At this stage, there are no further developments to announce.
In an interview, Pfizer CEO Albert Bourla said that the company is working closely with the Chinese government and that its Covid pill, Paxlovid, is being sent to the nation as it faces a wave of infections.
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Bourla told Tirrell that they are trying to understand what the policy and needs of the other company are. So far, the other company has shown tremendous interest in Paxlovid.
The CEO of Pfizer said that the company has been sending "very low quantities" of its drugs to China since they were registered there months ago. However, with the recent surge in cases, Pfizer is now sending more of its drugs to China.
Bourla continued, saying, “We are sending as much Paxlovid as we can. Our manufacturing machines are working so to be able to supply them at this stage.”
According to government data, South Korea's current account balance fell into deficit territory for the first time since August. This is a significant shift for the country, which has typically maintained a surplus in this area.
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The nation's balance of payments registered a deficit of $620 million for November, according to statistics from the Bank of Korea. This marks a reversal from the previous two months when South Korea recorded a surplus in current account balance, after a deficit of more than $3 billion in August.
The goods account recorded a deficit of $1.57 billion in the most recent quarter, a steep decline from the $6.07 billion surplus recorded in the same quarter a year earlier. The services account also recorded a deficit of $270 million, though this was only a slight increase from the $340 million deficit seen a year ago.
The sudden and rapid dismantling of Beijing's stringent Covid-19 controls has raised hopes that its battered economy could follow a similarly rapid pace of recovery. This is a positive development for the city and its people after years of struggling with the pandemic.
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As the world begins to reopen after the pandemic, Wall Street analysts are identifying the top stocks to benefit from the recovery. Hotels and airlines are among the obvious beneficiaries, but there are also many “less obvious” companies that stand to gain from the global economic rebound.
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After the Chinese government issued a warning to the technology sector, companies will be more cautious about how fast they expand, according to David Riedel, founder of Riedel Research Group.
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Riedel said on CNBC's "Street Signs Asia" on Tuesday that Beijing has "reminded" tech companies of who holds the power when it comes to collecting consumer data.
After shares of Alibaba rose on Monday following the announcement that Ant Group founder Jack Ma was no longer in control of the company, he made some comments.
Jack Ma has been fighting against counterfeits for years, and he has been bruised in the process. Riedel said that Ma is a fighter and he will continue to fight this battle.
Core consumer prices in Japan's capital city of Tokyo rose by 4% on an annualized basis in December, which was faster than expected and above the Bank of Japan's inflation target of 2%. This was according to government data.
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Economists had expected to see a 3.8% rise in prices for core items, excluding fresh food and including fuel, according to a Reuters poll.
Tokyo's inflation rate is often seen as an indicator for the nationwide inflation rate, which is scheduled to be released later this month on Jan. 20.
According to a survey released by the New York Federal Reserve on Monday, consumers expect to see the burden of inflation easing, and to pull back significantly on their spending.

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The central bank district's monthly Survey of Consumer Expectations for December showed that the one-year inflation outlook declined to 5%, down 0.2 percentage points from the previous month. This is the lowest level since July 2021.
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The price of platinum is rising rapidly, due to its increasing use in a variety of applications, from jewelry to fuel cells.
Despite trading up earlier in the day, the Dow and S&P 500 both closed down on Monday.
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The S&P 500 ended the day down just 0.1%, after bouncing around the flatline for most of the afternoon. The Dow also closed down 0.3%, as investors focused on growth stocks amid hopes that inflation is cooling off.

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The Nasdaq Composite ended the day up 0.6%, helped by a strong rally in Tesla shares and gains in other tech stocks.
The biggest losses were seen in sectors that have been doing well recently, like health care, energy and aerospace and defense.
Tesla's stock rose more than 7% on Wednesday, as investors pulled the electric vehicle maker off prior lows not seen in two-and-a-half years.Tesla has been under pressure in recent months, as the company has struggled to ramp up production of its new Model 3 sedan. But Wednesday's rally suggests that some investors are still bullish on Tesla's long-term prospects.
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The stock has rebounded by more than 12% so far this year, after plunging by 65% in 2020. This offers a much-needed respite for investors, who have seen the value of their holdings plummet over the past year.
Tesla has struggled in recent months amid CEO Elon Musk's chaotic purchase of Twitter. Some investors are watching Tesla and Apple for insights into how some of the biggest technology names will fare after the industry was beat down last year.