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Asian equity markets delivered mixed signals Wednesday as investors grappled with conflicting developments across major economies, from India’s trade deal euphoria to Tesla’s sharp decline following dismal UK sales figures.
Indian Markets Test Key Resistance Levels
The Indian stock market displayed range-bound trading as investors adopted a wait-and-watch approach following recent volatility. Despite initial excitement over the India-US trade deal announcement, market sentiment has struggled to maintain conviction at higher levels, with the Nifty 50 index hovering around the critical 25,500 support zone.
Sumeet Bagadia, Executive Director at Choice Broking, maintains optimism about the Indian market’s technical setup, noting that the Nifty 50’s ability to hold above 25,500 indicates improving sentiment. The expert recommended a buy-on-dips strategy while the index remains above this support band, with the next major hurdle at the 26,000 resistance level. Banking stocks outperformed significantly, with the Bank Nifty closing at 60,238 and maintaining strength above the psychologically important 60,000 level.
However, veteran investor Shankar Sharma struck a more cautious tone, describing the Indian market as an “ageing bull market” lacking fresh catalysts. Sharma warned that investors should expect moderate returns over the medium term, citing weaker nominal GDP growth and uncertainty surrounding the details of the India-US trade agreement. The deal reduces US tariffs on Indian goods from 50% to 18%, but Trump’s unpredictable policy shifts remain a key concern.
Tesla’s UK Struggles Highlight EV Competition
Tesla shares plunged over 5% during Wednesday’s trading session after data revealed a devastating 57% year-over-year decline in UK sales for January 2026. The electric vehicle maker sold just 647 vehicles in the UK market, less than half the number achieved by Chinese rival BYD, which moved 1,326 units during the same period.
The stark decline underscores Tesla’s struggle against intensifying competition from Chinese manufacturers like BYD and MG, even as the company launched cheaper Model Y and Model 3 variants to stimulate demand. Ford also outpaced Tesla significantly, selling 2,271 vehicles in the UK market. Tesla stock traded at $407.05, down from the previous close of $421.96, contributing to a 6.76% year-to-date decline despite the company’s 43% five-year gains.
Regional Markets Chart Different Paths
The Philippines presented a contrasting narrative, with brokerage firm Philstocks Financial projecting the PSE index will reach 7,100 in 2026, representing a strong recovery from last year’s poor performance when the local bourse ranked among the worst in East and Southeast Asia. The optimistic forecast hinges on 15% average earnings growth for index members, supported by robust economic fundamentals and capacity expansion.
Philstocks expects the Philippine economy to accelerate to 5% growth in 2026 from 4.4% in 2025, driven by improved infrastructure spending and monetary policy easing effects. The banking sector should benefit from sustained loan demand, while property developers stand to gain from lower interest rates following further BSP policy easing.
Regulatory Changes Shape Trading Landscape
Market structure developments also influenced sentiment, with India’s SEBI modifying its Order-to-Trade Ratio framework for algorithmic trading, effective April 6, 2026. The changes introduce new exemptions for equity options and specific price bands, aiming to balance market liquidity with preventing excessive order placement.
Meanwhile, Hong Kong Exchanges and Clearing outlined expansion plans into fixed income and commodities as global investors seek diversification away from US dollar assets. CEO Bonnie Chan highlighted growing investor desire to reduce US market concentration given rising uncertainties.
Market Outlook Reflects Global Uncertainty
The day’s mixed performance across Asian markets reflects broader investor uncertainty about global economic direction. While technical indicators in India suggest potential upside if key resistance levels break, fundamental concerns about earnings growth and geopolitical risks temper enthusiasm. Tesla’s UK decline exemplifies how competitive pressures can quickly impact even market leaders, while the Philippines’ recovery ambitions demonstrate regional markets’ varying trajectories in 2026.
Sources: Mint, Philstar, Economic Times, South China Morning Post
