Asian Markets Ended Week on Weak Note Amid Investor Concerns

 

Asian markets flattened on Friday, ending a week marked by steep losses. Decelerating US interest rate cuts in 2025 dented investor sentiment. Additionally, Japan's stronger-than-expected consumer inflation data dampened the sentiment further.

 

Japan’s Nikkei 225 fell 0.29%. November’s consumer price index showed that core inflation rose above the Bank of Japan’s 2% target, reinforcing the case for future rate hikes. However, BOJ Governor Kazuo Ueda indicated that rate increases may not occur until 2025.

 

Chinese markets' decline was constrained by optimism over anticipated fiscal spending increases in 2025. The mainland's Shanghai Composite Index closed down 0.058%. Hong Kong’s Hang Seng index dipped 0.16%. However, the People’s Bank of China left its benchmark rate unchanged on Friday due to a weak RMB.

 

Elsewhere, Australia’s ASX 200 sank 1.24%, pulled down by a sharp decline in Wesfarmers (ASX: WES).

 

South Korea’s KOSPI saw the steepest losses, falling 1.3% weighed by investor aversion over political uncertainty and losses in major chipmakers.

 

As of press time, Singapore's STI Index falls 0.91%. FTSE Bursa Malaysia KLCI drops 0.17%.

 

$NI25