18-04-2025

Asia Markets Mixed Amid US-China Trade War

Date: 18-04-2025
Sources: cnbc.com: 2 | scmp.com: 2 | washingtonpost.com: 1
Image for cluster 16
Image Prompt:

"A split-screen image of a bustling Asian market with rising inflation graphs in the background on one side, and a diplomatic meeting between Asian leaders with the US and China flags in the background on the other, conveying a sense of economic tension and diplomatic balancing."

Summary

Asian markets were mixed on Friday as Japan's inflation rate came in higher than expected, while the ongoing US-China trade war continues to impact regional dynamics, with Japan and South Korea trying to maintain a balance between their security ally, the US, and their economic ties with China.

Key Points

  • Japan's inflation rate rose to 3.6% in March, exceeding the Bank of Japan's 2% target for the third consecutive year.
  • The ongoing US-China trade war is driving Asian countries to strengthen ties with China, potentially improving its international image.
  • Japan and South Korea are navigating a delicate balance in the US-China trade war, trying to persuade the Trump administration to roll back imposed tariffs.

Articles in this Cluster

Asia markets: Japan CPI, Trump tariffs

Asian markets traded mixed on Friday, with Japan's Nikkei 225 rising 1.03% after the country's inflation rate came in at 3.6% year on year in March, above the Bank of Japan's 2% target. South Korea's Kospi and China's CSI 300 were also slightly higher. Shipping stocks in Japan and South Korea rose after US President Donald Trump's administration imposed fees on ships built in China. US markets closed mixed overnight, with the S&P 500 up 0.13%, the Nasdaq down 0.13%, and the Dow Jones down 1.33%.
Entities: Asia, Japan, Nikkei 225, Bank of Japan, South KoreaTone: analyticalSentiment: neutralIntent: inform

Japan inflation comes in at 3.6%, surpasses BOJ target for three straight years

Japan's inflation rate rose 3.6% year on year in March, exceeding the Bank of Japan's 2% target for the third consecutive year. The core inflation rate, which excludes fresh food prices, was 3.2%, in line with expectations. The data comes as Japan is engaged in trade talks with the US, with President Donald Trump having imposed tariffs on Japanese auto, steel, and aluminum imports. A strong inflation figure could allow the BOJ to raise interest rates, but looming US tariffs may constrain the BOJ's room for rate hikes, with analysts revising their outlook for rate hikes downward.
Entities: Japan, Bank of Japan, Donald Trump, US, MarchTone: analyticalSentiment: neutralIntent: inform

Is there a ‘silver lining’ for China in the tariff war with the US? | South China Morning Post

China's trade war with the US may have a "silver lining" as it drives Europe and Asian neighbours to strengthen ties with Beijing, improving China's international image. Analysts say Beijing is working to forge alternative trade agreements, and the trade war has created a stark contrast between the US and China, potentially rehabilitating China's image. China's relations with Europe, Japan, South Korea, and Southeast Asia may become closer as a result.
Entities: China, US, Europe, Asia, BeijingTone: analyticalSentiment: positiveIntent: analyze

The ‘stabiliser’? Why Japan is Southeast Asia’s most trusted partner | South China Morning Post

Japan has solidified its position as Southeast Asia's most trusted major power due to its "diplomatic consistency" and pacifist stance, amid global uncertainty and rising tensions. A survey by Singapore's ISEAS – Yusof Ishak Institute found that trust in Japan increased from 58.9% to 66.8% this year, with respondents from the 10 ASEAN member states and East Timor citing Japan's reliability as a key factor.
Entities: Japan, Southeast Asia, ISEAS – Yusof Ishak Institute, Singapore, ASEANTone: analyticalSentiment: positiveIntent: inform

Japan and South Korea tread a fine line in U.S.-China trade war - The Washington Post

Japan and South Korea are navigating a delicate balance in the U.S.-China trade war, as China attempts to exploit the situation to drive a wedge between them and their security ally, the U.S. However, Tokyo and Seoul are currently focused on persuading the Trump administration to roll back the tariffs imposed by President Donald Trump.
Entities: Japan, South Korea, U.S., China, Trump administrationTone: analyticalSentiment: neutralIntent: inform