Japan's indexes dropped for the second consecutive day, and the yen extended its 4-day advance to 2% despite the U.S. dollar dropping to a four-year low against the euro and the pound.
Three companies listed their stocks on exchanges in China and Hong Kong amid strong investor demand. Busy Ming Group, China's largest retailer of snacks and beverages, soared 90% in its Hong Kong listing.
The yen rebounded amid growing speculation that the U.S. Federal Reserve and the Bank of Japan are preparing for a joint intervention in the foreign exchange market.
China indexes struggled to advance, the offshore yuan retained an upward bias, and gold and silver reached new record highs as investors rotated out of the U.S. dollar-denominated assets.
Japan's core consumer price inflation stayed above the central bank's target rate of 2% for the 45th month in a row in December. The Bank of Japan held its rates steady at their highest levels since September 1995.
Japan's trade deficit shrank after exports rose to a record high despite a decline in shipments to the U.S. in 2025. Japan recorded a trade deficit for the fifth consecutive year.
Japan's stock market indexes decreased for the fifth consecutive session, and bond yields advanced amid rising political uncertainties ahead of the national election.
Rising political uncertainty and unresolved tariff worries dragged down Japan's indexes for the fourth session in a row. Japan heads for a national election in early February.
In cautious trading, China indexes turned lower as investors debated earnings outlooks for 2026 amid economic growth deceleration and persistent weakness in the residential property market.
China's economy expanded at the target growth rate of 5%, overcoming a sharp decline in exports to the U.S. and a persistent decline in residential property prices.
Stocks in mainland China and Hong Kong struggled to advance amid elevated trade friction with the U.S. and a slowing domestic economic growth backdrop.
