Asian stocks tumbled Friday, led by steep declines in Japan and South Korea, as tech shares mirrored Wall Street’s Nvidia-driven slump. Investors also assessed Tokyo’s latest inflation data ahead of the key U.S. PCE inflation report, which could influence the Federal Reserve’s rate outlook.
Japan’s Nikkei 225 dropped 3.2%, hitting its lowest since September 2024. SoftBank (TYO:9984) plunged 5.3%, while Tokyo Electron (TYO:8035) lost 5.1% and Panasonic (TYO:6752) fell 2%. South Korea’s KOSPI declined 3.1%, with Samsung Electronics (KS:005930) down 2.2% and SK Hynix (KS:000660) sinking 4.7%. India’s Nifty 50 fell 1%, and Australia’s ASX 200 slipped 1.1%.
In China, the Shanghai Composite dropped over 1%, while the Shanghai Shenzhen CSI 300 fell 0.9%. Hong Kong’s Hang Seng Index declined 2.6% but remained on track for a 15% gain in February, fueled by investor enthusiasm for DeepSeek’s AI advancements. Despite U.S. tariff concerns, Chinese tech stocks surged, with Alibaba (HK:9988) soaring 48% and Xiaomi (HK:1810) up 37% this month.
Tokyo’s core CPI rose 2.2% in February, easing from January’s 2.5% but staying above the Bank of Japan’s 2% target for the fourth month. Japan’s industrial output fell 1.1% in January, though manufacturers expect a 5% rebound in February. Meanwhile, retail sales rose 3.9% YoY, signaling steady consumer spending.
Global markets remain volatile as investors weigh inflation data, interest rate expectations, and tech sector performance.


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