Asia markets mixed as investors assess Australia and Japan data; investors await U.S. inflation data

Consumer confidence in Japan has risen to its highest level since May 2019, according to data from the Cabinet Office.

The March consumer confidence index climbed to 39.5 from a revised 39 in February, marking the sixth straight month where the index rose.

The survey also showed that 92.4% of respondents expected prices to go up in the next 12 months from March, an increase of 0.9 percentage points from the previous month.

— Lim Hui Jie

Hong Kong's monetary authority is reportedly considering deepening some of the investment connection schemes between the city and mainland China.

Speaking at the HSBC Global Investment Summit in Hong Kong, HKMA Chief Executive Eddie Yue said that there was capacity for greater "south bound" activity into Hong Kong, according to a Reuters report.

Yue told the HSBC Global Investment Summit in Hong Kong there was capacity for greater "southbound" activity from Chinese investors into Hong Kong's financial markets.

The so-called northbound trading in the connect schemes allows offshore investors to buy China-listed products via Hong Kong, while southbound trading is designed for China-based investors to buy into Hong Kong products.

— Reuters

Australia's business conditions and confidence were little changed in March, according to a survey by the National Australian Bank.

Business conditions fell one point to +9, while business confidence rose one point to +1, remaining below average.

In its report, NAB chief economist Alan Oster said that the readings indicate "firms have continued to be a bit concerned about the outlook even as the economy has remained resilient."

He added, "at some point, we have to expect these two headline measures to come back into better balance, either because firms' concerns are allayed and the outlook improves, or because the economy slows further – and of course we hope it will be the former rather than the latter." 

— Lim Hui Jie

Lee Boo Jin, the CEO of South Korean hotel group Shilla Hotels, has sold about 5.2 million shares of electronics giant Samsung Electronics in a $326 million block sale, with the shares priced at 84,100 won apiece, according to Reuters.

A block sale is a large securities transaction at a negotiated price that tends to shield or lessen the impact of the sale on the price of the publicly traded stock.

South Korean media reported that the sale was to cover inheritance tax liabilities after the death of former Samsung chairman Lee Kun-hee.

The younger Lee is the late Lee Kun-hee's eldest daughter, and also the younger sister of Samsung Electronics Executive Chairman Lee Jae-yong.

— Lim Hui Jie, Reuters

South Korean automakers Hyundai and Kia have signed a memorandum of understanding with Indian battery company Exide Energy for strategic co-operation in India's EV market.

Exide said that both the parties will work together for the development, production and supply of battery cells for Hyundai Motor's electric vehicles in the Indian market.

Hyundai said the move will position the company and Kia as "pioneers in applying domestically produced batteries" in their upcoming EV models in the Indian market.

Hyundai stock was down 0.55% on Tuesday, while Kia shares rose 0.65%.

— Lim Hui Jie

The U.S. government plans to offer $6.6 billion in subsidies to South Korea's Samsung Electronics for expanding its chip output in Texas, according to a report by Reuters.

The report said the subsidy will go toward the construction of four facilities in Taylor, including one $17 billion chipmaking plant that Samsung announced in 2021.

The subsidy will also be for investment in an undisclosed location and Samsung will more than double its investment in the U.S. to over $44 billion as part of the deal, according to the report.

Samsung shares were mostly flat on Tuesday.

— Lim Hui Jie, Reuters

The data center sector is poised for fast growth in the years ahead, according to UBS.

The investment bank predicts the data center sector will grow between 15% and 20% in 2024 and 2025, and "healthy" double-digit growth in the following years.

It names three related stocks to play the trend.

CNBC Pro subscribers can read more here.

— Weizhen Tan

A global chip stock has risen significantly this year driven by what Morningstar calls the "AI buzzword" narrative.

The research firm believes its current share price is overvalued and could drop by 54%.

CNBC Pro subscribers can read more about the AI stock here.

— Ganesh Rao

The energy sector has pulled up from behind to overtake the broader market this year as a surge in crude prices pushes stocks to all-time highs.

The energy sector has gained more 17% this year, compared to a 9% gain for the S&P 500.

Exxon Mobil hit an all-time intraday high of $122.15 on Friday and has gained more than 21% for the year. The refiners Marathon Petroleum, Phillips 66 and Valero also hit all-time highs on Friday. Those stocks are up 47%, 27% and 40%, respectively, for the year.

Diamondback Energy is trading at all-time highs Monday dating back to its initial public offering in October 2012, while ConocoPhillips is at levels not seen since November 2022.

The energy rally may still have room to run given that the sector is still underperforming the broader market by 15% over the past year. Many momentum funds have not included the sector yet because they look at 12 months' performance.

"This suggests there is likely more upside for the group, as it just broke out of a two-year base with relative strength turning up," Jonathan Krinsky, a technical analyst with BTIG, told clients Sunday.

— Spencer Kimball

Recent data supporting a recovery in manufacturing activity and "signs of life" in inflation are some of the factors pointing to an impending market slowdown, according to Torsten Slok, chief economist at Apollo Global Management.

"This repricing of rates, I think, is very important because it is telling you that we've been waiting for this slowdown for so long. Why isn't everyone expecting this rate slowdown to come in the next several quarters, in particular with the tailwind of the stock market up $10 trillion since the November FOMC meeting?" Slok told CNBC earlier Monday. "We have a dramatic tailwind to consumption and to capex over the coming quarters that will continue to support inflation to the upside."

Against this backdrop, Slok pointed out that gains in equity market are spreading to other sectors beyond technology. He advised investors to seek out winners and losers from a "bottom-up perspective," rather than just reaching for the "Magnificent Seven," which posted sky-high returns last year.

— Pia Singh

Treasury Secretary Janet Yellen said Monday that measures such as tariffs on China's green energy exports are not out of the question.

"I wouldn't rule anything out at this point. We need to keep everything on the table. We want to work with the Chinese to see if we can find a solution," she said in an interview with CNBC's Sara Eisen, when asked about the possibility of Washington imposing tariffs if China does not adjust its approach to industry incentives.

"I'm not thinking so much of export restrictions, as some shifts in their macroeconomic policy, and a reduction in the amount of, particularly local government subsidies, to firms," Yellen said.

Yellen also noted the U.S. planned to "underscore" a needed shift in policy at future discussions.

— Fred Imbert