Japan's Nikkei hits a new record as inflation accelerates; Hong Kong stocks fall nearly 2%

It's time to diversify technology and AI exposure, and invest outside the U.S., according to Alejo Czerwonko of UBS Global Wealth Management.

"The bulk of the emerging market tech opportunity can be found in places like [South] Korea and Taiwan," he told CNBC, adding that these markets are "global tech champions."

For global tech firms, UBS expects revenue growth of 20% year-over-year in 2024, he said. That number may go up to 70% per year over the next five years for AI-specific companies globally, he added.

The Taiwan Weighted index hit an all-time high on Friday as investors were optimistic about the country's tech firms in the face of booming AI and semiconductor demand.

— Shreyashi Sanyal

China's onshore and offshore yuan slipped to its weakest levels against the greenback since November 2023, with both metrics breaching the 7.2 level.

The onshore yuan last traded at 7.225, while the offshore yuan stood at 7.254.

Reuters reported that China's state banks were swapping dollars for yuan in a bid to arrest the slide.

— Lim Hui Jie, Reuters

Hong Kong-listed shares of Li Auto plunged as much as 9.2% on Friday, weighing down the broader Hang Seng index.

The Chinese electric vehicle firm cut its deliveries outlook for the first quarter. It now expects to deliver between 76,000 and 78,000 vehicles, down from 100,000 to 103,000 units forecast earlier.

The Hang Seng index fell 2.7%, while the Hang Seng Tech index dropped 3.8%.

Other EV makers also declined — Xpeng dropped 8.3% and Nio fell 3%.

— Shreyashi Sanyal

China's securities regulator has reportedly launched inspections into mutual fund companies, according to a Reuters report.

Reuters, citing local newspaper 21st Century Business Herald, said the inspections were conducted by local branches of the China Securities Regulatory Commission.

These inspections covered daily operations, training, and Chinese Communist Party building, the newspaper said. It did not name the asset managers that were inspected.

Last week, China's state run Global Times reported that the CSRC had vowed to build a "textbook-style" supervision model to regulate China's $3.8 trillion mutual fund industry.

On Feb. 7, the CSRC appointed markets veteran Wu Qing — known as the "Broker Butcher" for his crackdown on traders — as chairman.

The rising demand for generative artificial intelligence has led to a surge in shares of many AI-linked companies like chipmaker Nvidia and ChatGPT backer Microsoft. Now, RBC Capital Markets has identified three lesser-known companies poised to cash in on the AI boom in a big way.

RBC noted that major cloud providers like Amazon, Microsoft and Google are packing data centers — facilities that host computer servers — with tens of thousands of power-hungry AI chips, driving a surge in demand for infrastructure like cooling systems and electrical equipment.

To meet that demand, one of the companies identified by RBC is setting up facilities dubbed "AI factories."

CNBC Pro subscribers can read more here.

— Ganesh Rao

After the U.S. Federal Reserve left rates unchanged and penciled in three rate cuts this year, gold prices soared as high as $2,222.39 per ounce - a new record high - earlier in Thursday's session.

Top hedge fund manager David Neuhauser is predicting the price of gold to reach $2,500 by the end of 2025, and $3,000 by 2030.

Even in this environment, not all gold stocks are equal – with some big miners underperforming despite the record gold price, according to Neuhauser.

He names three stocks to buy.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Apple suppliers in Asia largely fell after the U.S. Department of Justice sued Apple in an antitrust case on Thursday, saying that the iPhone maker has a monopoly over the phone market that harmed consumers, developers, and rival companies.

Shares of Taiwan Semiconductor Manufacturing Corp, which supplies the chips that power the iPhone, were down 0.77%.

South Korean electronics firms Samsung Electronics and LG Display lost 1.13% and 2.41% respectively. Both firms produce OLED screens for the iPhone.

However, iPhone manufacturer Foxconn, known as Hon Hai Precision Industry in Taiwan, jumped 3.16%.

— Lim Hui Jie

Taiwan's central bank raised its main policy rate from 1.875% to 2%, its highest level since 2008, in a surprise move on Thursday, according to an official statement.

The Central Bank of the Republic of China (Taiwan) said "inflation has stayed at a relatively higher level since 2021 and that a proposed electricity rate hike might be implemented in April this year, inflation expectations might shift upwards."

In a Reuters poll, 25 out of 26 economists said the central bank would keep the rate unchanged. 

"The decision reinforced CBC's commitment in containing inflation," Commerzbank said, while adding that it now expects the central bank to take a cautious approach.

— Shreyashi Sanyal

South Korea's producer price index rose 1.5% year on year in February, higher than the 1.3% in January and at its fastest rate since April 2023.

On a month-on-month basis, the PPI rose 0.5%, faster than January's 0.3% gain.

In South Korea, the PPI measures monthly variations in the prices of goods shipped by industrial producers within the domestic market.

— Lim Hui Jie

Japan's headline inflation rate accelerated to 2.8% in February, climbing from the 2.2% in January and ending a streak of three straight months declines.

The core inflation rate — which strips out prices of fresh food — also climbed to 2.8% from 2%, in line with expectations from a Reuters poll of economists.

The so called "core-core" inflation metric, which strips out prices of both fresh food and energy and is watched by the Bank of Japan, came in at 3.2%, up from 2.6% in January.

— Lim Hui Jie

Reddit popped 38% on Thursday to open at $47 a share in its New York Stock Exchange debut.

The social media company began trading under the ticket symbol "RDDT" after pricing its IPO at $34 a share on Wednesday. It marks the first major social media company to go public since Pinterest in 2019.

— Samantha Subin, Jonathan Vanian

Industrials stocks were among the best performers in the S&P 500 during Thursday's session.

The sector rose more than 1% during late-morning trading and was the top performer in the broad-based index thanks to 3% gains from Uber Technologies and Stanley Black & Decker. Other notable gainers included Caterpillar, Rockwell Automation, Cummins and Builders FirstSource.

Financial stocks also outperformed, boosting the sector 0.9%. Goldman Sachs, Blackstone and BlackRock each rallied 3%. PayPal and regional bank stocks such as Comerica, Raymond James and Citizens Financial added about 2% each.

— Samantha Subin

Apple shares slid 3% after the Department of Justice sued Apple on Thursday, saying that its iPhone ecosystem is a monopoly that drove its "astronomical valuation" at the expense of consumers, developers and rival phone makers.

Federal antitrust enforcement and 16 attorneys general also say that Apple's anti-competitive practices extend beyond the iPhone and Apple Watch businesses, citing Apple's advertising, browser, FaceTime and news offerings.

"Each step in Apple's course of conduct built and reinforced the moat around its smartphone monopoly," the complaint filed in the District of New Jersey said.

— Kif Leswing, Rohan Goswami