This is CNBC’s live blog covering Asia-Pacific markets.
Asia-Pacific markets fell on Friday, with yields on long-term Japanese government bonds hitting levels not seen since the 2008 financial crisis.
The moves in Asia markets mirrored losses on Wall Street after U.S. President Donald Trump’s tariff concessions failed to calm investors.
Traders were also worried by economic data from the U.S., which raised alarm that Trump’s policies could hinder the U.S. economy. The Federal Reserve’s Beige Book and the Institute for Supply Management’s manufacturing reading both indicated fear of rising input costs because of the tariffs.
Back in Asia, customs data showed China’s exports in the January to February period rose 2.3% in U.S. dollar terms from a year earlier, significantly undershooting expectations of a 5% increase in a Reuters poll.
That marked the slowest growth since April last year when exports increased by just 1.5% on year, according to LSEG data.
Japan’s benchmark Nikkei 225 led regional losses, closing 2.17% lower at 36,887.17. The broad-based Topix fell 1.56% to end the day at 2,708.59.
South Korea’s Kospi lost 0.49% to close at 2,563.48, while the small-cap Kosdaq dropped 0.98% to end the day at 727.70.
Australia’s S&P/ASX 200 plunged 1.81% to close at a six-month low of 7,948.20.
Hong Kong’s Hang Seng index was down 0.76% in choppy trade in its last hour. Mainland China’s CSI 300 index ended the day 0.31% lower at 3,944.01.
India’s benchmark Nifty 50 and BSE Sensex index were trading flat as at 1 p.m. local time.
Overnight in the U.S., all three major indexes fell, with the Nasdaq Composite falling 2.61% to end in correction territory, which is when an index falls 10% from a recent high.
The Dow Jones Industrial Average slid 0.99%, while the S&P 500 tumbled 1.78%.
— CNBC’s Alex Harring and Pia Singh contributed to this report.
Expected early rate hikes, increased defense spending could be fueling Japan bond yields: SMBC
Expectations of early rate hikes by the Bank of Japan, as well as increased defense spending, may be fueling the rise in long-term Japanese government bond yields.
This is according to Hirofumi Suzuki, chief FX strategist at Sumitomo Mitsui Banking Corporation.
In comments to CNBC on Thursday, Suzuki explained that JGB yields were rising not only due to uncertainty around tariffs, but also due to the expectation of early rate hikes by the Bank of Japan, as well as the rise in German bond yields and increased German defense spending.
“There is also speculation that Japan’s increasing defense spending in the future could contribute to a rise in long-term interest rates,” Suzuki said.
— Lim Hui Jie
Japan finance minister reportedly warns of action against excessive moves in the FX market
The Japanese yen’s rise to a five-month high earlier this week prompted Finance Minister Katsunobu Kato to say that appropriate action would be taken against excessive moves in the foreign exchange market, according to Reuters.
“We’ve been seeing one-sided, rapid movements since December,” Kato said at a press conference on Friday.
“We’ve been alarmed by foreign exchange moves including those driven by speculators. As we’ve been saying, we’ll take appropriate action against excessive moves,” he added.
The Japanese yen on Friday traded 0.28% lower at 147.53 against the U.S. dollar.
— Amala Balakrishner, Reuters
China’s exports grew 2.3% on year in Jan-Feb, well short of market estimates
China’s exports growth slowed more than expected at the start of the year, data from the customs authority showed Friday, as higher U.S. tariffs partly offset momentum in the country’s rare bright spot.
Exports in the January to February period rose 2.3% in U.S. dollar terms from a year earlier, significantly undershooting expectations of a 5% increase in a Reuters poll.
That compares with growth of 10.7% in December, 6.7% in November, 12.7% in October, following a soft rise of 2.4% in September.
Read the full story, here.
— Anniek Bao
Shares of JD.com slip on Friday despite better fourth quarter revenue
Chinese e-commerce company JD.com saw Hong Kong shares slip about 5% on Friday despite posting a rise in revenue for its fourth quarter.
This was in contrast to the 0.34% rise in the company’s U.S. listed ADRs. JD.com said on Thursday that revenues were up 13.4% year-on-year in the fourth quarter to $47.5 billion.
“In Q4, the number of third-party active users and third-party order volumes continue to accelerate, both outpacing the overall JD retail segment growth,” said CEO Sandy Xu during the earnings call.
Despite the fall on Friday, the major Chinese online shopping company’s stock is up 26.1% year-to-date in Hong Kong, according to LSEG data.
Chinese retail sales have remained under the pressure of deflation and low consumption. China this week announced it was doubling subsidies for its consumer trade-in program, which Beijing expanded this year to include some smartphones as well as home appliances.
The company recorded a 15.8% year-on-year growth for electronics and home appliances category, JD’s greatest source of revenue.
— Bernice Ooi
Japanese, South Korean defense stocks climb, as Trump threatens NATO
Defense stocks in Japan and South Korea are proving to be a bright spot in Friday’s downturn, as U.S. President Donald Trump reportedly renewed his threat against NATO.
“If they don’t pay, I’m not going to defend them. No, I’m not going to defend them,” Trump told reporters.
South Korea’s Hanwha Aerospace, Korea Aerospace Industries, Poongsan and Hyundai Rotem are all in positive territory.
Japanese defense heavyweights Mitsubishi Heavy Industries, Hosoya Pyro-Engineering and Kawasaki Heavy Industries also climbed on Friday.
Trump also spoke about the U.S.- Japan alliance in his comments, while South Korean arms makers have benefited from increased European defense spending.
— Lim Hui Jie
Japan government bond yields hit highest levels since financial crisis
Yields on long-term Japan government bonds rose to their highest level since 2008, with yields on the 20-year and 30-year JGB hitting levels not seen since 2008.
The 20-year JGB yield climbed to a high of 2.25% on Friday, an increase of just over 5 basis points, while the 30- year JGB yield rose to a high of 2.556%, an increase of 6.6 basis points.
The yield on the benchmark 10-year JGB also rose to 1.538%, its highest level since 2009.
The moves extend gains from the previous session, with analysts attributing Japan’s surging yields to pressure from a global sell-off in bonds.
— Lim Hui Jie
Real estate stocks drag Nikkei; Nintendo shares down 6%
Japan’s Nikkei 225 led losses in Asia on Monday amid a wider downturn, with real estate stocks dragging the index.
However, the largest loser on the index was video games company Nintendo, which fell about 6%.
Electronics giant Sony was also among the Nikkei’s top losers, slipping 5.18%.
— Lim Hui Jie
Some investors say they are trying to tune out the trade war noise
The flags of Mexico, the United States and Canada fly in Ciudad Juarez, Mexico Feb. 1, 2025.
Certuity chief investment officer Scott Welch said Thursday that investors would be better off taking a break from following the constantly evolving ins-and-outs of the trade war.
“That’s what the market’s paying attention to right now. In my opinion, everybody should just take their dog for a walk and relax,” Welch said.
Globalt Investments senior portfolio manager Thomas Martin similarly is sticking to a patience approach.
“There’s just things that are changing so much. If you don’t like how things are now, just wait a minute, right? It’s like the weather in the mountains. So we’re not trying to trade every little thing that’s going on,” Martin said.
— Jesse Pound
Bitcoin to stay under pressure in the near term, JPMorgan warns
Representations of cryptocurrency Bitcoin are seen in this illustration taken Nov. 25, 2024.
JPMorgan doesn’t expect a big move higher in crypto in the near future.
Cryptocurrencies including bitcoin rallied to start the week following a social media update by President Trump on the widely expected bitcoin stockpile, which has become a “strategic crypto reserve.”
Those gains quickly reversed as part of a broader sell-off on tariff concerns, but there is also lingering skepticism about the crypto reserve now that the market has had some time to digest it.
“Overall we believe that crypto markets are likely to remain under pressure over the near term,” JPMorgan’s Nikolaos Panigirtzoglou said in a note Wednesday.
For more, read our full story here.
— Tanaya Macheel
S&P 500 sees longest period of heightened volatility since 2020, data shows
The S&P 500 has recorded a string of recent volatility that has not been seen in nearly half a decade, according to Bespoke Investment Group.
The broad index is on track to notch its sixth straight session with a move either up or down of at least 1%. A streak of that length has not been seen since November 2020, Bespoke data shows.
— Alex Harring
