Asia-Pacific markets experienced a downturn on Tuesday as investors processed South Korea’s August inflation data, which fell to its lowest level in over three years. South Korea’s consumer price index (CPI) for August rose by 2% year-on-year, a decrease from July’s 2.6% and the lowest inflation rate since March 2021. On a monthly basis, the CPI increased by 0.4%, slightly above the 0.3% expected by economists.
Japan’s Nikkei 225 declined by 0.15% in afternoon trading, while the Topix managed a modest gain of 0.42%. In South Korea, the Kospi fell 0.34%, and the Kosdaq, which includes smaller companies, dipped by 0.66%.
Australia’s S&P/ASX 200 also saw a decrease, down 0.16%, reflecting a cautious sentiment in the region. Mainland China’s CSI 300 showed minor improvement as it attempted to recover from a seven-month low reached on Monday.
The Hong Kong Hang Seng Index fell by 0.37%, contributing to the regional downtrend. U.S. markets were closed on Monday for Labor Day, but futures indicate a weaker start for Tuesday’s session. The Dow Jones Industrial Average futures were down by 0.14%, S&P 500 futures fell 0.12%, and Nasdaq-100 futures decreased by 0.26%.
Analysts are watching for further reactions in the Asia-Pacific markets as they adapt to South Korea’s inflation data and the ongoing global economic uncertainties. The lower-than-expected inflation figures in South Korea may influence regional monetary policy and market sentiment.
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