Asia-Pacific markets decline on Friday, following a global selloff where Nvidia and other technology stocks were sold off and driven by growing fears of a trade war. US President Donald Trump confirmed on Thursday that his proposed 25% tariffs on Mexico and Canada will take effect on March 4, alongside an additional 10% duty on Chinese imports. Investors are now awaiting the release of Friday’s PCE price index report, the Fed’s preferred measure of inflation. Japan ( NKY:IND ) fell 2.90% to around 37,300 on Friday, hitting its lowest levels in five months. The Japanese yen strengthened to around 149.4 per dollar on Friday and was on track to gain nearly 4% for February after the latest economic reports pointed to softening activity, including retail sales, industrial production and Tokyo inflation figures. Japan retail sales rise the most in 11 months; industrial output falls for 3rd month Data released on Friday showed that Tokyo’s core inflation, a leading indicator of nationwide price trends, slowed to 2.2% in February from 2.5% in January. Japan's housing starts declined by 4.6% year-over-year in January 2024, worsening from a 2.5% drop in the previous month and surpassing market forecasts of a 2.6% fall. China ( SHCOMP ) fell 1.94% to below 3,370 while the Shenzhen Component dropped 1% to 10,820 on Friday, with both benchmarks set to end the week lower. The offshore yuan decline around 7.29 per dollar, triggered by US President Donald Trump's announcement of an additional 10% tariff on Chinese imports. Meanwhile, investors eagerly await fiscal stimulus measures from China’s "Two Sessions" next week. Hong Kong ( HSI ) fell 3.52% to 23,415 on the last trading day of February, marking a second session of losses. India ( SENSEX ) fell 1.43% to 73,696 in morning trade on Friday, after being flat the prior day, hitting its lowest level since early June 2024. Traders were cautious ahead of the release of GDP data later today, with the market expecting the GDP to grow at 6.3%, still lower than the RBI's estimate of 6.8%. Australia ( AS51 ) fell 1.16% to close at 8,172 on Friday, reaching its lowest point in nearly two months. The Australian dollar depreciated past $0.623 on Friday and was on track to decline over 2% for the week. Domestically, data revealed that private credit growth in Australia fell short of expectations in January, with both household and business credit showing signs of slowdown. In the U.S., on Thursday, all three major indexes ended in red dragged down by a selloff in tech stocks, as investors weighed Nvidia’s earnings, trade policy uncertainty, and economic data. U.S. stock futures stabilized on Friday as investors braced for the upcoming Personal Consumption Expenditures price index report, the Federal Reserve’s preferred gauge of inflation: Dow -0.02%; S&P 500 +0.10%; Nasdaq +0.05%. Bitcoin ( BTC-USD ) continued its decline toward $80,000 on Friday and is now down about 25% from all-time highs as the selloff in cryptocurrencies deepened, reversing gains made following the election victory of US President Donald Trump. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: South Korea and U.S. finance chief discuss tariffs, investments, FX Japan retail sales rise the most in 11 months; industrial output falls for 3rd month Trump floats 25% duty on EU—says it was formed to screw U.S., brews uncertainty over Canada, Mexico trade Australia’s monthly CPI Indicator held steady at 2.5% in January People's Bank of China holds MLF rate steady
