Asia-Pacific markets traded lower on Monday, mirroring declines in United States stock futures as investors weighed the potential for additional tariffs ahead of key U.S. inflation data later this week.
By 11:35 am AEDT (12:35 am GMT), Australia’s ASX 200 was down 0.3%, South Korea’s Kospi 200 fell 0.7%, and Japan’s Nikkei 225 slipped 0.2%.
Data released by China’s National Bureau of Statistics on Sunday showed consumer inflation rising for the first time since August 2024, driven by increased spending ahead of the Lunar New Year.
The Consumer Price Index (CPI) climbed 0.7% month-on-month and 0.5% year-on-year in January, exceeding estimates of 0.4%.
Meanwhile, China’s Producer Price Index (PPI), which measures wholesale inflation, fell 2.3% year-on-year, a steeper decline than the expected 2.1% drop.
Fresh economic data from the U.S. added to market jitters. The University of Michigan’s preliminary consumer sentiment index for February dropped to its lowest level since July 2024, with inflation expectations for the year ahead rising to their highest since November 2023.
Friday’s U.S. market session saw losses after President Donald Trump announced plans for reciprocal tariffs on trading partners.
The Dow Jones Industrial Average slid 444.2 points or 1% to 44,303.4, while the S&P 500 declined 1% to 6,026. The Nasdaq Composite dropped 1.4% to 19,523.4.
A spike in the 10-year Treasury yield above 4.5% further pressured equities.
Among commodities, Brent crude oil rose 0.5% to $74.66 per barrel, while gold edged up 0.2% to $2,861.07 per ounce.
In China, the Shanghai Composite Index gained 1% to 3,303.7, while the CSI 300 rose 1.3% to 3,892.7.
Hong Kong's Hang Seng Index added 1.2% to 21,133.5.
India's BSE Sensex fell 0.3% to 77,860.19 after the Reserve Bank of India reduced interest rates by 25 basis points.
European indices also closed lower. FTSE 100 in the U.K. slipped 0.3% to 8,700.5, while Germany’s DAX declined 0.5% to 21,787. France’s CAC 40 dropped 0.4% to 7,973.
