Asia-Pacific Stocks Trade Mixed as Tokyo Inflation Runs Hotter Than Expected

Asia-Pacific markets traded mixed on Friday as investors assessed fresh inflation data from Tokyo and awaited India’s fiscal second-quarter GDP numbers. The region saw cautious moves as U.S. stock futures held steady during the Thanksgiving holiday, leaving the Nasdaq Composite on track to break its seven-month winning streak.

Tokyo’s latest inflation print, often viewed as a leading signal for national price trends, showed headline inflation easing slightly to 2.7% in October from 2.8% the previous month. However, core inflation, excluding fresh food but including energy costs, rose to 2.8%, marginally above economists’ expectations and still well above the Bank of Japan’s 2% target. The data strengthened expectations of a near-term interest rate hike.

Across markets, Japan’s Nikkei 225 slipped 0.19%, while the Topix edged slightly higher. South Korea’s Kospi dropped 0.86%, though the tech-heavy Kosdaq gained 2.73%. Shares of Enchem surged nearly 14% on reports it secured an order from Chinese battery giant CATL, while LG Energy Solution fell more than 5% after parent LG Chem announced plans to reduce its stake.

In Australia, the S&P/ASX 200 traded 0.13% higher. Hong Kong’s Hang Seng Index declined 0.5%, and China’s CSI 300 eased 0.21%. China Vanke shares continued to face pressure, hitting all-time lows in Hong Kong and their weakest level since 2008 in Shenzhen.

Overnight in the United States, the major indexes were little changed. Dow futures inched up 10 points, while S&P 500 and Nasdaq-100 futures hovered near the flat line. U.S. markets were closed for Thanksgiving and will operate a shortened session on Friday. November remains a losing month for equities so far, with weakness in technology stocks raising questions about the near-term profitability of AI-driven companies. Some investors, however, believe the recent pullback may pave the way for a year-end rally as valuations become more attractive.