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This is CNBC's live blog covering Asia-Pacific markets.
Asia-Pacific markets traded lower, taking the lead from Wall Street's losses overnight as investors looked to the year ahead.
The Nikkei 225 in Japan fell 1.05% while the Topix shed 0.8%. South Korea's Kospi fell 1.51% as the country's retail sales for November fell 1.8%, the third consecutive month of declines, reversing gains seen in the third quarter. The S&P/ASX 200 in Australia also fell 0.97%.
Hong Kong's Hang Seng index dropped 0.92% – despite further easing of Covid restrictions takes into effect today, with stocks related to re-opening being closely watched. The city will release its trade data later in the day.
In mainland China, the Shanghai Composite lost 0.27% and the Shenzhen Component bucked the trend and traded 0.31% higher.
The U.S. government announced it will require airline passengers arriving from China, Hong Kong and Macau to show a negative Covid test starting Jan. 5 regardless of nationality of vaccination status.
Overnight on Wall Street, the major indexes closed lower as investors headed into the final trading days of the 2022, with Apple weighing heavily on the Dow as it broke a key level and fell to another 52-week low.
– CNBC'S Tanaya Macheel, Alex Harring contributed to this report
Oil prices dipped marginally as China continues to see a rising number of Covid cases as well as a strain in medical resources fizzle optimism in the nation's reopening and fuel demand outlook.
Brent crude futures shed 0.46% to stand at $82.88 per barrel. Similarly, the U.S. West Texas Intermediate dropped 0.49% to $78.58 per barrel.
"Even the China re-opening narrative may be hobbled by record Covid breakout in China," Mizuho Bank's Vishnu Varathan wrote in a note, adding that its reopening should also not be mistaken for an "enduring immunity" from global recession risks.
—Lee Ying Shan
Shares of most Apple suppliers in Asia fell after the tech giant's stock recorded a fresh 52-week low.
Apple's main chip supplier Taiwan Semiconductor Manufacturing Company fell 1.55%. Largan Precision slid 1.66%. Foxconn shares dipped 1.91%.
LG Electronics and Samsung lost 2.57% and 1.59% respectively. SK Hynix declined 0.92%.
In Japan, shares of Nidec dropped 1.42% in morning trade, and Alps Alpine similarly slumped 1.5%.
Overnight in the U.S., Apple's shares fell around 3% at the close.
— Lee Ying Shan
Italy will require all inbound travelers from China to undergo Covid tests, Reuters reports its health minister as saying, after authorities in Milan reported that almost 50% of passengers on two flights from China tested positive.
It has not been specified what measures would be imposed on arrivals who test positive, Reuters reported.
Separately, the UK is considering following suit after the U.S. announced mandatory testing on arrivals from China, the Telegraph reported.
—Lee Ying Shan
It's been a bad year for tech companies, and many investors have been wondering when tech stocks will rebound.
Tech fund manager Jeremy Gleeson of AXA Investment Managers told CNBC Pro Talks last week that he still believes in the sector.
He explains why and names the stocks to buy.
CNBC Pro subscribers can read more here.
— Weizhen Tan
Digital currency exchange Kraken announced it will cease operations in Japan next month, and deregister from Japan's Financial Services Agency on Jan. 31, 2023.
The exchange cited a confluence of "current market conditions in Japan" and a "weak crypto market globally" as the reasons behind its move.
The decision was also part of Kraken's efforts to "prioritize resources and investments in those areas that align with [its] strategy and will best position Kraken for long term success."
Bitcoin fell 0.64% in the past 24 hours and last traded at $16,571.12, according to Coin Metrics. Ether dropped 1.18% to $1,193.34.
— Ryan Browne, Lee Ying Shan
Airline passengers entering the U.S. from China will need to have a negative Covid test, a federal health official announced on Wednesday.
The rule goes into effect on Jan. 5 and applies to all travelers who are at least two years of age from China, Hong Kong and Macau. The rule applies regardless of nationality or vaccination status.
After attempting a zero Covid policy for much longer than other major countries, China is now seeing a wave of infections after rolling back its public health restrictions in recen weeks.
— Jesse Pound
Apple fell through the key $129 level and set a new 52-week low for a second day Wednesday.
Some analysts look at Apple, the largest market cap stock, as a bellwether for the overall market and a major influence on investor sentiment.
"It's not great for the overall market," said Todd Sohn, technical analyst at Strategas. "The end of year is a funky time, but if it continues into the first couple of weeks of the year, it's for real."
Apple fell through $129 support in early trading Wednesday and touched a low of $126.41 before reversing. The stock was at $127.15 in afternoon trading.
"If your largest weight is weak and making new lows, that's not great. Your top player is not scoring," he said. Sohn said the five largest market cap names are still losing steam. "The silver lining is the influence on the (S&P 500) index is dropping."
--Patti Domm
An reopening in the world's second-largest economy could spell a buying opportunity for investors as China unwinds much of its Covid restrictions.
Investors have taken recent developments as a signal to start snapping up China equities. They expect that China's economy could get a boost in 2023, while the U.S. and Europe continue to deal with the lagging effect of monetary tightening that could put a damper on economic growth.
"A lot of institutional investors have been very underweight Chinese equities," said Carlos Asilis, co-founder and CIO at Glovista Investments.
"And I think that that's been a mistake, because it has ignored this very important potential baseline case which is now being priced in, which is that of the Chinese economy undergoing next year a similar recovery path that we saw this year in the case of the United States," he added.
CNBC Pro subscribers can read the full story here.
— Sarah Min
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