Asia markets mixed after Wall St decline on U.S. tariff concerns; eyes on key PCE inflation data

Asia-Pacific markets mixed on Friday as market sentiment weakened after US President Donald Trump announced a 25% tariff on all car imports, set to take effect next week, have heightened fears of retaliation from key trading partners. Japan ( NKY:IND ) fell 2.13% to below 37,200, while the broader Topix Index dropped 1.6% to 2,770 on Friday, hitting a two-week low. Meanwhile, a summary of opinions from the Bank of Japan’s March meeting reinforced expectations that the central bank will continue raising interest rates if its economic and price outlook holds. The core consumer price index for the Ku-area of Tokyo in Japan increased by 2.4% year-on-year in March 2025, accelerating from 2.2% in February which was also the consensus forecast. China ( SHCOMP ) fell 0.28% traders monitored China’s PMI data, set for release from official and private sources in the coming days. Hong Kong ( HSI ) rose 0.37% Australia ( AS51 ) rose 0.28% to below 7,960 on Friday, extending losses from the previous session as global trade tensions escalated. The Australian dollar Investors also turned their focus to the Reserve Bank of Australia’s policy decision next week, where the central bank is widely expected to keep interest rates steady. In the U.S., on Thursday, all three major indexes ended lower as investors reacted to President Trump's announcement of new tariffs on foreign-made autos, sparking concerns about a potential trade war and its broader impact on the global economy. U.S. stock futures edged lower on Friday as investors awaited the latest PCE price index report: Dow +0.09% ; S&P 500 +0.03% ; Nasdaq -0.06% . Investors now turn their attention to Friday’s PCE price index report, the Federal Reserve’s preferred inflation measure. Currencies: ( JPY:USD ), ( CNY:USD ), ( AUD:USD ), ( INR:USD ), ( HKD:USD ), ( NZD:USD ). More on Asia: Australia’s monthly CPI eased to three-month low of 2.4% in February Australia government unveils income tax cuts for 2026-27 Japan’s manufacturing downturn extends to ninth month; services activity turns negative Japan’s core inflation rate slows to 3% in February, exceeds forecast; food prices slow slightly People’s Bank of China keeps lending rates unchanged, in line with expectations