Most Asian stocks declined Thursday amid concerns over slower U.S. interest rate cuts and weak Chinese inflation data signaling economic challenges. Regional markets mirrored a muted Wall Street session, influenced by the Federal Reserve’s hawkish December meeting minutes.
Chinese markets faced pressure, with the Shanghai Composite and CSI 300 dropping 0.3% each. December’s inflation data revealed stagnant consumer price growth and shrinking producer price inflation for the 27th consecutive month. Despite aggressive stimulus measures, weak consumer sentiment and a prolonged property slump continue to weigh on China's economy. Investors are monitoring potential fiscal moves aimed at boosting spending as trade tariffs under Trump-era policies add further strain.
Japan's Nikkei 225 and TOPIX fell 0.8% each, driven by stronger-than-expected wage data for November, which raised concerns about inflationary pressures. This fueled speculation that the Bank of Japan might tighten monetary policy further, pressuring export-reliant stocks as the yen strengthened. However, the BOJ has given no clear signals about upcoming rate hikes.
Elsewhere, Australia’s ASX 200 fell 0.4%, impacted by weak retail sales data, while stronger commodity exports lifted the trade balance. Singapore’s Straits Times Index declined 0.4%, whereas South Korea’s KOSPI gained 0.4%, continuing its recovery despite ongoing political uncertainty surrounding President Yoon Suk Yeol.
India's Nifty 50 futures pointed to a soft opening, following disappointing corporate earnings. Broader Asian markets retreated overall, reflecting investor caution over prolonged high U.S. interest rates and economic headwinds across the region.
This trend highlights growing concerns among investors as global markets navigate inflation, policy uncertainty, and slowing growth.


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