A customer picks up a seasoning at a supermarket in Tokyo on February 27, 2024.
Kazuhiro Nogi | Afp | Getty Images
Japan’s Nikkei 225 briefly crossed 41,000 to hit a fresh all-time high on Friday as the country’s inflation accelerated in February, while other Asia-Pacific markets declined.
Japan’s headline inflation rate for February came in at 2.8%, climbing from the 2.2% seen in February. Core inflation — which strips out prices of fresh food — was at 2.8% compared with 2% in the previous month.
The BOJ, in its monetary policy statement on Tuesday said that “the price stability target of 2 percent would be achieved in a sustainable and stable manner.”
However, the Nikkei retreated at the lunch break to trade just below the 41,000 mark, last up 0.1% in volatile trading. The Topix, which also hit a fresh record, was last up 0.41%.
Hong Kong’s Hang Seng index plunged 3%, dragged by electric vehicle stocks after the index gained almost 2% on Thursday. Mainland China’s CSI 300 was also down 1.49%.
The Hang Seng Tech index shed 4.3%, with shares of Li Auto plunging 10% on Friday after the EV maker cut its first-quarter deliveries forecast.
South Korea’s Kospi fell 0.48%, after leading gains in Asia on Thursday, and the small-cap Kosdaq was down marginally.
In Australia, the S&P/ASX 200 slipped 0.38%, while the Taiwan Weighted Index traded close to the flatline after its central bank raised rates in a surprise move on Thursday
Overnight in the U.S., all three major indexes hit fresh records, continuing the rally from Thursday after the U.S. Federal Reserve held rates steady and maintained its rate cut forecast for 2024.
The Dow Jones Industrial Average jumped 269.24 points, or 0.68%, to close at 39,781.37. The S&P 500 advanced 0.32% to end at 5,241.53, while the Nasdaq Composite edged up 0.20% to finish at 16,401.84.
“People have faith in the Fed right now, and that cuts are coming,” said Jay Woods, chief global strategist at Freedom Capital Markets. “We are in a good place, and the market believes in the smooth landing narrative. Whatever the Fed is saying continues to be the music to the ears of the market.”
— CNBC’s Samantha Subin and Alex Harring contributed to this report
