Asian stocks stabilized on Wednesday as concerns over DeepSeek, a Chinese AI model, eased. Australian stocks led gains, hitting a near two-month high after weaker-than-expected inflation data fueled expectations of interest rate cuts by the Reserve Bank of Australia. Trading was muted due to Lunar New Year holidays in China, Hong Kong, Taiwan, Singapore, and South Korea. Wall Street’s tech sector rebounded, though U.S. futures dipped ahead of the Federal Reserve’s meeting. Japanese tech stocks, including Sony, recovered, helping the Nikkei 225 rise 0.5%. Meanwhile, Australian CPI data reinforced rate cut bets, though inflation remained above the RBA’s target range.
