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.
Japan's two benchmark indexes advanced to fresh record highs, the yen dropped to a one-year low, and the yield on 10-year government bonds advanced to the highest level since 1999.
Japan's indexes soared as much as 3%, and the yen drifted to a new one-year low, and investors returned from a three-day weekend. The yield on 10-year Japanese government bonds advanced to 2.1%, the highest since 1999.
