Market Reaction to Tokyo Inflation and US Tariffs

Following the release of higher-than-expected annual inflation data from Tokyo, major stock market indexes across the Asia-Pacific region experienced a downturn on Friday. This economic indicator has sparked concerns among investors, who are also grappling with the potential repercussions of United States President Donald Trump's recent imposition of a 25% tariff on automobiles manufactured outside the US.

Regional Market Performance

Japan's Nikkei saw a significant drop, declining by 2.18% or 824 points by 7:08 am CET, as the US dollar weakened against the yen, trading at ¥150.7675. Similarly, South Korea's Kospi decreased by 2.04%. In contrast, Australia's S&P/ASX 200 managed a slight gain, closing 0.16% higher.

In China, the Shanghai Composite fell by 0.51%, while the Shenzhen Composite dropped by 0.60% by 6:54 am CET. Hong Kong's Hang Seng also faced a downturn, sliding by 0.99% or 234 points by 7:10 am CET.