Tokyo, Japan skyline with the Tokyo Tower
Chunyip Wong | E+ | Getty Images
Asia-Pacific markets trade mixed Friday as investors assessed inflation data from Japan, while the threat of U.S. President Donald Trump’s tariffs dents investor sentiment.
Japan’s Nikkei 225 slipped 0.43%, while the Topix declined 0.33%. Japan’s inflation rate in January climbed to 4%, hitting its highest level since January 2023. Core inflation — which excludes prices of fresh food — rose to 3.2%, beating Reuters’ expectations of 3.1%.
South Korea’s Kospi traded 0.42% lower while the small-cap Kosdaq added 0.43%.
Hong Kong’s Hang Seng Index rose 2.25%, while the Hang Seng Tech index added 3.44%. Shares of Hong Kong listed Alibaba rose 11% following a significant profit increase for the company in the December quarter, driven by growth in its Cloud Intelligence division and e-commerce sector. Mainland China’s CSI 300 rose 0.4%.
Australia’s S&P/ASX 200 traded 0.59% higher.
Investors will continue keeping an eye on the Japanese yen, which strengthened to a more than two-month high of 150.52 per U.S. dollar on Thursday amid bets of more rate hikes by the Bank of Japan this year. The currency is currently trading at 150.22 against the greenback.
Overnight in the U.S., the three major averages closed lower after the S&P 500 hit record highs for two consecutive days. Investors sold off shares of some popular companies following a weak forecast from retail giant Walmart, which raised concerns about the economic outlook.
The Dow Jones Industrial Average lost 450.94 points, or 1.01%, to end at 44,176.65. The S&P 500 shed 0.43% and closed at 6,117.52, and the Nasdaq Composite dipped 0.47% and closed at 19,962.36.
—CNBC’s Brian Evans and Sean Conlon contributed to this report.