<div id="readability-page-1" class="page"><div><figure></figure>Asian markets began on Wednesday on an uneven footing as investors weighed multiple factors.The sentiment appeared cautious following a technology-led selloff in the United States, fresh concerns about the sustainability of AI spending, and lingering tension surrounding the Iran conflict.The tone across the region is not outright risk-off, as traders are also looking ahead to the Federal Reserve’s policy decision and a heavy slate of megacap earnings later in the day.The broad MSCI Asia-Pacific index outside Japan eased 0.2%, as Japanese markets were shut for a holiday, leaving the session to be driven by a patchwork of local moves.Mixed opening for Asian marketsThe first read from the tape was one of divergence.South Korea’s Kospi lost 0.39%, while the Kosdaq was flat, and Australia’s S&amp;P/ASX 200 slipped 0.28%.Hong Kong held up better, underscoring how quickly sentiment can split across the region when global cues are unsettled.The pattern suggested that investors were not rushing for the exits, but they were also not willing to chase risk after Tuesday’s pullback on Wall Street.The selloff reflected renewed questions about AI valuations and investment returns, while concerns were sharpened by a Wall Street Journal report stating that OpenAI had missed internal targets.Hong Kong and mainland China trade different storiesHong Kong was the clear outperformer in the Asian open, with the Hang Seng index adding 1.2%, while mainland China’s CSI 300 was down 0.26%.That split matters as it suggests that investors were treating the two markets as distinct trades rather than a single China exposure.Hong Kong is benefiting from its own mix of flows and positioning even as mainland equities remain softer.In a session this uneven, that kind of divergence is often more revealing than the headline regional average.It points to selective buying rather than broad conviction, and it keeps the focus on stock-specific and policy-specific drivers.Korea and Australia show caution, not panicSouth Korea and Australia were softer, but the declines were modest enough to signal restraint rather than stress.The Kospi’s 0.39% drop and the ASX 200’s 0.28% decline fit with the broader mood.The absence of Japan, closed for a holiday, also removed one of the region’s usual anchors and made the early tone less definitive.US markets had already sold off overnight, with the S&amp;P 500 falling 0.5% and the Nasdaq dropping 0.9%, as traders digested geopolitical risk and the prospect of a prolonged test for the AI trade ahead of results from Microsoft, Alphabet, Amazon and Meta.The deeper issue hanging over the session was not just one weak Wall Street day, but the larger question of whether the billions being poured into artificial intelligence will be rewarded in earnings.Tech stocks came under pressure after the WSJ's report on OpenAI, which raised concern that the sector’s heavy data-centre spending may not be matched by near-term revenue.</div></div>

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Asian markets opened unevenly on Wednesday, with the Hang Seng index gaining 1.2% while South Korea's Kospi fell 0.39% and Australia's ASX 200 slipped 0.28%. Investor sentiment was cautious following a tech selloff in the U.S. and concerns over AI spending sustainability. The MSCI Asia-Pacific index eased 0.2%, with Japan closed for a holiday. The divergence in market performance suggests selective buying rather than broad conviction, as traders await the Federal Reserve's policy decision and major earnings reports.

Hang Seng gains 1.2% while Asian markets wobble on tech selloff