The momentum in Japan markets were largely driven by the country’s technology and financial sector.
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Hong Kong stocks rose Tuesday after Wall Street saw a massive drop in shares of tech companies, while several Asia-Pacific markets were closed for the Lunar New Year holiday.
Hong Kong’s Hang Seng Index traded 0.14% higher.
Japan’s Nikkei 225 dropped 1.18% while the Topix erased losses to trade flat.
Japan’s chip-related stocks extended losses for a second day as Chinese AI startup DeepSeek‘s challenge to America’s global leadership in artificial intelligence threatens Asian tech companies part of the U.S. AI value chain. Advantest lost 11%. Tokyo Electron fell 4.88%, while Renesas Electronics dipped 3.07%.
Australian, Taiwan, South Korean and Chinese markets are closed for holidays.
India’s Nifty 50 benchmark and the BSE Sensex index began the day up 0.36% and 0.54%, respectively. The Reserve Bank of India on Monday announced a slew of plans to pump more than $17 billion into the financial ecosystem through measures including bond purchases and currency swaps.
Overnight in the U.S., the S&P 500 and Nasdaq Composite plunged on concerns about an artificial intelligence stock bubble popping because of the emergence of Chinese startup DeepSeek, which has possibly made a competitive AI model at a fraction of the cost of Silicon Valley models.
The Nasdaq Composite lost 3.07%, falling to 19,341.83, and the S&P 500 slid 1.46% to 6,012.28. The Dow Jones Industrial Average added 289.33 points, or 0.65%, to close at 44,713.58. Gains in Apple, Johnson & Johnson and Travelers helped lift the 30-stock index.
Nvidia lost close to $600 billion in market cap on Monday, the biggest drop for any company on a single day in U.S. history.
—CNBC’s Lisa Kailai Han, Fred Imbert Pia Singh and Samantha Subin contributed to this report.
