China’s stock market dropped on Wednesday as weak inflation data raised concerns about slowing economic growth, while other Asian markets showed mixed performance amid fears of potential tariffs. The Shanghai Composite fell 1.2% after China’s consumer price index (CPI) rose by just 0.8% year-over-year in February, below market expectations.
“The weak inflation print suggests that domestic demand remains subdued,” said a market analyst. “This, combined with tariff fears, is weighing on investor sentiment.”
Meanwhile, Japan’s Nikkei 225 rose by 0.5%, and South Korea’s Kospi gained 0.3%, reflecting cautious optimism among investors. However, analysts warn that the region’s markets could remain volatile as geopolitical and economic risks persist.
The mixed performance highlights the challenges facing Asian markets as they navigate weak economic data and escalating trade tensions. Investors are advised to remain cautious and stay informed about developments in the region.
