Asia markets live updates: U.S. inflation, BOJ yen

Korean Air said Tuesday the European Commission had approved its merger with Asiana Airlines.

Shares of Korean Air fell 1% in afternoon trading on Wednesday, while Asiana Airlines tumbled nearly 8%.

The approval was based on conditions that Asiana Airlines would sell its cargo freighter business, and divest four overlapping passenger routes between Korea and the European Union.

“These measures are designed to maintain a competitive environment in the relevant markets,” the statement from Korean Air read.

Korean Air needs to find a buyer for Asiana’s cargo freighter business, once the merger is complete.

“With the EC approval secured, Korean Air continues to be focused on its discussions with the U.S. competition authority to finalize the overall merger review processes as soon as possible,” according to Korean Air.

The deal, worth $1.4 billion, was first announced in late 2020 and is yet to receive regulatory approval from U.S. authorities.

— Shreyashi Sanyal

The electric vehicle industry is seeing cutthroat competition between investor favorite Tesla and several Chinese automakers like BYD.

However, one strategist has his sights on the wider electric vehicle ecosystem.

“While Tesla grabs all the headlines, we don’t necessarily think that it’s going to be the electric vehicle manufacturers that do the best,” Morningstar’s Chief Markets Strategist David Sekera said, naming two under-the-radar companies he likes.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

Japan’s yen breached 150 against the dollar on Wednesday, weakening for a seventh straight session.

The country’s top currency diplomat Masato Kanda reportedly said that “recent movements in the foreign exchange market have been rapid” with regard to the yen.

Kanda also noted that authorities are watching the activity and would take “appropriate actions on forex if needed,” according to Reuters.

The Bank of Japan’s exit from negative interest rates and other policy measures have been on investors’ radar amid expectations of rate cuts by the U.S. Federal Reserve this year.

— Shreyashi Sanyal

Investors have been piling into Japan’s markets, repeatedly pushing them to record highs.

Will its bull run continue though, and how should investors play this Asian market?

Here’s what Wall Street and other pros say, and how to invest – including the stocks to buy.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Stocks closed lower on Tuesday after January’s hotter-than-anticipated inflation report sent the equity market reeling early in the morning.

The Dow Jones Industrial Average dropped 524.63 points, or 1.35%, to settle at 38,272.75. It was the worst day for the 30-stock index since March 2023. The S&P 500 slipped 1.37% to close at 4,953.17, while the Nasdaq Composite shed 1.80% to finish at 15,655.60.

— Lisa Kailai Han

Oil futures rose Tuesday despite stubborn inflation in the U.S. that dragged the stock market lower.

The West Texas Intermediate contract for March gained 95 cents, or 1.24%, to settle at $77.87 a barrel. The Brent contract for April settled at $82.77 a barrel, up 77 cents or 0.94%.

WTI has struggled to break out of a range of about $68 to $78 a barrel amid uncertainty over war in the Middle East and an unclear supply and demand outlook for the year.

WTI and Brent are up about 8.68% and 7.44%, respectively, for the year, however.

— Spencer Kimball

All 11 sectors that comprise the broad S&P 500 traded down at least 1% Tuesday afternoon. As a whole, the benchmark index lost about 1.8%.

Real estate stocks led the index lower, hurt by 5% drops in Boston Properties and Alexandria Real Estate Equities. The utilities and consumer discretionary sectors also weighed on the S&P 500, with each down more than 2%.

On the other hand, health care saw the smallest drop with a slide of 1.2%. Losses for the sector were mitigated by rallies of more than 2% in Incyte and McKesson.

— Alex Harring