- Asian Stocks Rise Amid Cash Rotation Out of US: Markets Wrap
Stocks in Asia rose for a fourth day, serving as a contrast to the US where a selloff continued. Gold rose to a
new record. Shares in Japan and South Korea rose, while Chinese stocks were mixed. S&P 500 futures
advanced after benchmarks slid on Tuesday. Investors have slashed holdings of US equities by the most on
record while cash levels jumped, according to Bank of America Corp.’s latest survey. Uncertainty over
President Donald Trump’s economic policies, particularly around trade and tariffs, has spurred fears of a
recession, with traders seeking clarity from the Federal Reserve policy decision later Wednesday. Investors
have also been hunting for opportunities elsewhere, with benchmarks in China and Japan rallying in recent
weeks. - Dow drops more than 250 points Tuesday, S&P 500 closes 1% lower as sell-off resumes
Stocks pulled back Tuesday as a sell-off that has engulfed Wall Street in recent weeks resumed after two
straight winning sessions. The Dow Jones Industrial Average lost 260.32 points, or 0.62%, closing at
41,581.31. The S&P 500 shed 1.07%, ending at 5,614.66. The broad market index concluded the day 8.6% off
its closing high reached in February, bringing it near correction territory. The Nasdaq Composite dropped
1.71% and settled at 17,504.12. - Oil prices ease after US-Russia agreement on 30-day energy ceasefire
Oil prices slid on Wednesday after Russia agreed to U.S. President Donald Trump’s proposal that Moscow and
Kyiv stop attacking each other’s energy infrastructure temporarily, which could lead to more
Russian oil entering global markets. Brent crude futures were down 12 cents, or 0.2%, at $70.44 a barrel by
0106 GMT. U.S. West Texas Intermediate crude (WTI) lost 15 cents, or 0.2%, to $66.75. Russian
President Vladimir Putin agreed on Tuesday to stop attacking Ukrainian energy facilities but stopped short of
endorsing a full 30-day ceasefire that Trump hoped for. Russia is one of the world’s top oil suppliers, but its
output has waned since the beginning of the war, which resulted in sanctions on Russian energy.
A potential ceasefire could lead to an easing of sanctions, which might raise oil supply and ease prices,
analysts said. U.S. tariffs on Canada, Mexico and China have raised recession fears, which also weighed
on oil prices as that would have a dampening effect on demand for crude. But the declines in oil prices were
limited by ongoing turmoil in the Middle East. Trump vowed to continue his country’s assault on Yemen’s
Houthis and said he would hold Iran responsible for any attacks carried out by the group that has disrupted
shipping in the Red Sea. Israeli air strikes in Gaza, meanwhile, killed at least 200 people, Palestinian health
authorities said, which ended a week-long ceasefire and elevated risks of oil supply being threatened from
the broader region. U.S. crude oil stocks data, meanwhile, painted a mixed picture, with crude stocks rising
while fuel inventories fell. Crude stocks were up 4.59 million barrels in the week ended March 14, market
sources said, citing American Petroleum Institute figures on Tuesday. Gasoline inventories fell by 1.71 million
barrels and distillate stocks were down 2.15 million barrels, they said. Official government data is due on
Wednesday. - Gold hovers near record high on safe-haven demand; Fed decision in focus
Gold held above the key $3,000/oz level on Wednesday, trading near a record high hit in the previous
session, as Middle East tensions and trade uncertainties lifted bullion’s appeal, while traders awaited the
Federal Reserve’s decision later in the day. Spot gold held its ground at $3,029.70 an ounce, as of 0230 GMT,
after hitting an all-time peak of $3,038.26 on Tuesday. U.S. gold futures eased 0.1% to $3,037.50.
“The current trading environment, where there are worries about tariffs, growth and inflation, is playing
to gold’s strengths as an uncertainty hedge,” KCM Trade chief market analyst Tim Waterer said.
Investors are worried about an economic slowdown and elevated risks of recession due to U.S. President
Donald Trump’s tariffs, which are widely considered likely to stoke inflation. The tariffs have flared up trade
tensions and include a flat 25% levy on steel and aluminum, which came into effect in February, and
reciprocal and sectoral tariffs to be imposed on April 2. The Fed, which will conclude its two-day policy
meeting later in the day, is expected to hold its benchmark interest rate steady in the 4.25%-4.50% range.
Non-yielding gold thrives in a low interest rate environment. - Bank of Japan keeps rates steady as Trump tariffs cast a shadow over economic outlook
Japan’s central bank on Wednesday kept its key policy rate steady at 0.5% in a unanimous vote, as the
export-reliant country assesses the potential impact of U.S. President Donald Trump’s protectionist trade
policies on its economy. The move, which was in line with market expectations, comes ahead of the U.S.
Federal Reserve’s policy meeting, where the central bank is expected to keep its benchmark interest rate
steady. “Japan’s economy has recovered moderately, although some weakness has been seen in part,” BOJ
policymakers said in a statement, while cautioning of “high uncertainties surrounding Japan’s economic
activity and prices, including the evolving situation regarding trade … and domestic firms’ wage -and price
setting behavior.” The bank is seen to be referring to reciprocal tariffs and sector-specific tariffs that Trump is
expected to announce on April 2., said Hiroki Shimazu, chief strategist at MCP Asset Management Japan.
Investors will monitor BOJ Governor Kazuo Ueda’s press conference at 3:30 p.m. local time on Wednesday,
for clues on potential timing of the next rate hike, Shimazu said. Without mentioning Trump’s tariffs
specifically, Ueda said last week that he was “very worried” about uncertainty surrounding overseas
economic developments. Following the rate decision, the Japanese yen was little moved, trading at 149.46
against the U.S. dollar. The benchmark Nikkei 225 index was up 0.69%. Analysts are of the view that the BOJ
will soon raise interest rates, but are split on the timing for the next hike. - Trump and Putin agree on ‘energy and infrastructure ceasefire’ as step to Ukraine peace deal
U.S. President Donald Trump and Russian President Vladimir Putin on Tuesday agreed on steps toward a
peace deal to end the war in Ukraine, and struck a narrow ceasefire that is set to take effect at once.
“We agreed to an immediate Ceasefire on all Energy and Infrastructure,” Trump wrote in a Truth Social
post after his call with Putin, which lasted at least 90 minutes. That agreement came “with an understanding
that we will be working quickly to have a Complete Ceasefire and, ultimately, an END to this very horrible
War between Russia and Ukraine,” Trump wrote. Trump’s post echoed the Kremlin, which said after the call
that Putin agreed on Russia and Ukraine refraining from attacking each other’s energy infrastructure for 30
days. Putin “immediately” issued an order to that effect to the Russian military after the call, the Kremlin
said. The White House, in its own readout of the call, said Trump and Putin also agreed to “technical
negotiations on implementation of a maritime ceasefire in the Black Sea, full ceasefire and permanent
peace.” Those negotiations “will begin immediately in the Middle East,” the White House said.
The call took place more than three years after Russia launched a military invasion of Ukraine on Putin’s
order. Ukrainian President Volodymyr Zelenskyy said last week that Kyiv would agree to a 30-day ceasefire of
all hostilities, but only if Russia also signed on. The White House did not immediately respond to a request to
confirm the accuracy of the Kremlin’s summary of the call. The White House’s readout said that Trump and
Putin also “broadly” discussed the Middle East as “a region of potential cooperation to prevent future
conflicts.” - German parliament passes historic debt reform, paving the way for higher defense spend
Germany’s Bundestag on Tuesday voted in favor of a major fiscal package, which includes changes to long
standing debt policies to enable higher defense spending and a 500 billion euro ($548 billion) infrastructure
and climate fund. Some 513 parliamentary members voted in favor of the plan, while 207 voted against it.
There were no abstentions. More than two thirds of parliament were needed to support the package in order
for it to pass. The law also needs to be approved by the Bundesrat, a body representing the country’s states,
on Friday to become enshrined in Germany’s constitution. Under the proposed new laws, defense and
certain security expenditures above a certain threshold would no longer be subject to the debt brake, which
limits how much debt the government can take on and dictates the size of the federal government’s
structural budget deficit. Loans taken on as part of the infrastructure fund would also be exempt from the
debt brake, while Germany’s states would also have greater flexibility around debt. Carsten Brzeski, global
head of macro at ING, on Tuesday said the vote meant the debt brake rule is now “not officially dead but
buried alive.” “Germany has given up on leading the group of fiscal frugals in Europe for the sake of boosting
its economy,” he added. The Christian Democratic Union, alongside its sister party the Christian Social Union,
which jointly won the largest share of votes in Germany’s national election in February, proposed the fiscal
shift in collaboration with the Social Democratic Party. The factions appear likely to form the incoming
coalition government, with the fiscal reform package a by-product of talks about a potential governing
partnership between them. - Google parent Alphabet Inc. agreed to acquire cybersecurity firm Wiz Inc. for $32 billion in cash, reaching
a deal less than a year after initial negotiations fell apart because the cloud-computing startup wanted to
stay independent
Wiz will join the Google Cloud business once the deal closes, the companies said on Tuesday. The takeover is
subject to regulatory approvals and is likely to close next year, they said. Google framed the Wiz acquisition
as a way to beef up its cloud security offerings and provide customers with new ways to keep their systems
secure in a new era of AI. The deal, which would be Alphabet’s largest to date, comes after Wiz turned down
a $23 billion bid from the internet search leader last year after several months of discussions. At the time,
Wiz walked away after deciding it could ultimately be worth more by pursuing an initial public offering
company. Concerns about regulatory challenges also influenced the decision. The companies have agreed to
a breakup fee of about 10% of the deal value, or $3.2 billion, if the deal doesn’t close, according to a person
familiar with the matter. Shares of Alphabet fell 2.2%. - Shares of Tesla fell 5.3% Tuesday, while shares of Chinese rival BYD shot to an all-time high after
unveiling an electric car that can be charged as quickly as a gas vehicle is refueled
It’s the latest blow for Tesla where a high valuation is pinned on the company’s ability to constantly innovate
and stay ahead of rivals. Sentiment was already souring over the past month on reports that sales of its
electric cars have plunged in key markets. And Musk’s rising political prominence — that late last year was
widely expected to provide a boost to Tesla’s business — has instead become a problem for shares. “It
appears that Tesla is losing its competitive edge on its core competency, as many peers are quickly
encroaching on their space,” said David Wagner, portfolio manager at Aptus Capital Advisors.
“Range-anxiety and long charging times are among the top hurdles for EV purchases,” said Thomas Thornton,
founder of Hedge Fund Telemetry. “Any time a company solves a problem as big as this for the EV industry, it
will be a game changer.” - Apple stock rout shaves nearly $700 billion from market cap since record close
Apple (AAPL) stock has fallen roughly 18% from its record close in December, shedding more than $700
billion off the iPhone maker’s market cap as investors scrutinize the company’s AI play and evaluate
macroeconomic headwinds. Apple shares closed at an all-time high of $259 on Dec. 26 — just two weeks
after the tech giant added ChatGPT to its iPhones as part of its second rollout of Apple Intelligence AI
features — and the company’s market cap soared to a record $3.9 trillion. Last week alone, Apple shares fell
11%, marking their biggest weekly loss since November 2022. And as of Tuesday midday, the iPhone maker’s
market cap stood at roughly $3.2 trillion. Apple shares have suffered in the first months of 2025 as Big Tech
stocks have led a broader stock market downturn, driven by investor fears that the artificial intelligence
boom could disappoint. Apple has also faced its own particular setbacks. - Nvidia stock sinks as CEO Jensen Huang keynotes GTC 2025 event, unveils new chip lineup
Nvidia (NVDA) stock slid 3.4% Tuesday after the AI chipmaker’s annual GTC conference in California kicked off
with a keynote from CEO Jensen Huang, who unveiled new and updated AI chips. “Artificial intelligence has
made extraordinary progress,” Huang said at the start of his speech. The CEO confirmed in a two-plus hour
keynote that Nvidia will launch its upcoming AI chip, Blackwell Ultra, in the second half of 2025, as previously
expected. Blackwell Ultra follows the chipmaker’s current-generation Blackwell GPUs, which achieved full
scale production during Nvidia’s fourth quarter, raking in $11 billion in revenue, after facing delays and
reports of overheating and glitches. “Blackwell [the current-generation GPU] is in full production, and the
ramp is incredible,” Huang said. “Customer demand is incredible.” “We’ll easily transition into the upgrade
[Blackwell Ultra],” he said. In addition to the Blackwell Ultra chip, Nvidia debuted its GB300 superchip, which
combines two Blackwell Ultras and one of its Grace CPUs (central processing units). Huang also said Nvidia
will launch its next AI superchip, Vera Rubin, in the second half of 2026 — and the next-gen superchip after
that, Vera Rubin Ultra, in the second half of 2027. - XPeng (NYSE:XPEV) Sees Q1 2025 Vehicle Delivery Jump as Revenue Climbs to CNY 15 Billion
XPeng has recently set a robust corporate tone with guidance for Q1 2025, anticipating a significant increase
in vehicle deliveries and revenue. The company reported Q4 2024 earnings showing improved revenues year
over-year and a reduced net loss, which could underpin the stock’s notable 91% appreciation over the last
quarter. Key developments, such as the introduction of the updated XOS 5.4 software and strategic European
market expansions, have potentially bolstered investor confidence. This occurred amidst a broader market
backdrop where major indices experienced turbulence, with Tesla facing particular pressure. While XPeng
navigated entry into markets like the UK and Switzerland, investors may have been encouraged by the
company’s resilience and forward-looking prospects, contrasting with ongoing uncertainties in the broader
U.S. equities. These developments align with the stock’s performance trajectory amid market conditions,
where strategic expansion and positive financial guidance are significant influencers of shareholder
sentiment. XPeng’s shares delivered an impressive total return of 150.10% over the past year, significantly
outperforming both the US Auto industry, which returned 29.1%, and the broader US market, which saw a
10% gain. Several key developments contributed to this performance. The full rollout of the XOS 5.4 software
in January 2025 introduced enhanced AI features and smart driving capabilities, while the subsequent launch
of the XPENG MONA M03 grabbed market attention with record monthly deliveries.
