Asian markets weakened on Thursday as renewed concerns over U.S.–China trade relations weighed on sentiment, following reports that Washington may tighten export restrictions on advanced technologies to Beijing.
Japan’s Nikkei 225 fell 1.5% from record highs, while the TOPIX dropped 0.5%, as traders took profits and awaited clarity on Prime Minister Ryuichi Sasae’s upcoming stimulus package — expected by some to exceed last year’s ¥13.9 trillion.
Mainland Chinese equities also retreated, with the CSI 300 down 0.6% and the Shanghai Composite sliding 0.7%. Hong Kong’s Hang Seng slipped 0.2% amid weakness in technology names. Despite the Bank of Korea leaving rates unchanged at 2.5% and signaling future easing, the KOSPI reversed early gains to end 1% lower.
Soft U.S. market performance overnight — pressured by mixed earnings and a steep Tesla profit drop — further dampened regional sentiment. U.S. equity futures were largely flat as of 04:20 GMT.
Elsewhere across the region, Australian and Singaporean markets traded sideways, while India’s Nifty 50 gained 0.7%.
Investors now turn their attention to next week’s U.S. CPI release ahead of the Federal Reserve meeting, where expectations of a rate cut continue to shape market direction.