Asia markets mostly rise after Japan's corporate inflation beats expectations; Nikkei slides further

Asia-Pacific markets mostly rose as Japan’s corporate inflation figures for January came in higher than expected. Japan’s corporate inflation rate for February rose to 0.6%, beating the 0.5% expected by economists. A strong inflation reading could clear the way for the Bank of Japan to raise rates sooner, weighing on Japan’s equity markets. Japan’s Nikkei 225 slipped for a second straight day, losing 1.34%, while the S&P/ASX 200 rebounded and gained 0.21%. South Korea’s Kospi also regained ground, trading up 0.22%, while the Hang Seng index extended its gains for a third straight day, opening up 0.47%. Investors will also be keeping an eye on inflation figures out of India as well as the U.S. later Tuesday. In the U.S., the S&P 500 and Nasdaq Composite fell, while the Dow Jones Industrial Average added 0.12%. Japan’s 2-year government bond yields hit a 13-year high. The yield on the 2-year JGB rose to 0.2% on Tuesday, while the yield on the 10-year JGB also climbed to 0.778%, its highest level since November 2023. Japan’s corporate goods price index rose 0.6% year-on-year in February, beating economists’ expectations. A strong inflation reading could clear the way for the Bank of Japan to raise rates sooner. Declining foreign investment and a prolonged property slump are some of the issues that have put pressure on the Chinese economy. However, China saw a rise in consumer prices and factory activity. The stock market also saw gains, making China an appealing destination for investors once more. Barclays has named three European stocks that investors should consider buying for the upcoming quarter. UBS warns that the market could experience a retreat due to elevated sentiment and positioning. Oil prices were mixed as traders awaited new inflation data and reports on the global crude outlook. Coinbase and Microstrategy’s stocks rose as bitcoin reached a new record.