Asian Markets React to Japanese Economic Indicators

Investors across the Asia-Pacific region faced a challenging Friday as they processed the latest economic data from Japan. The Statistics Bureau of Japan reported a decrease in Tokyo's inflation rate to 2.9% in January, signaling a potential cooling of economic activity. This was compounded by the Ministry of Economy, Trade and Industry (METI) revealing a 1.1% drop in industrial output, although retail sales saw a modest increase of 0.5% for the same period.

Market Reactions Across the Region

The impact of these figures was felt across major stock indexes. Japan's Nikkei 225 experienced a significant drop of 2.82% by 2:53 am CET. Similarly, Hong Kong's Hang Seng and South Korea's Kospi were not spared, with losses of 1.69% and 2.42% respectively. In mainland China, the Shanghai Composite and Shenzhen Composite also saw declines. Australia's S&P/ASX 200 was not immune, recording a 0.77% decrease.

Currency Movements

Amidst the stock market fluctuations, the dollar weakened against the yen, trading 0.20% lower at 149.39050 by 2:58 am CET, reflecting the broader uncertainty in the region's financial markets.