Asian stocks are exhibiting diverse performance today, following the previous session's substantial increase, spurred by the People's Bank of China's unanticipated decision to reduce its reserve requirement ratio for local banks, freeing approximately 2 trillion yuan in liquidity.
Investors across Asian markets are proceeding with caution as they await the announcement of U.S. inflation data, which is expected later in the day. The Federal Reserve is also expected to reveal its monetary policy next week.
The Japanese market is experiencing a considerable decline, influenced by the hawkish remarks from Bank of Japan Governor Kazuo Ueda. Investors are also taking into account the latest inflation data from Japan.
According to reports, Tokyo's Consumer Price Index (CPI) in Japan fell to 1.6% in January, down from 2.4% in December 2023.
A report issued by the Bank of Japan revealed that producer prices in Japan rose by 2.4% year-on-year in December, which met expectations and remained consistent with the November rating, following an upward revision from 2.3%.
Producer prices experienced a 0.1% increase in December on a monthly basis, which is a slowdown from the previous month's 0.3% increase.
The Nikkei 225 has dropped by 500.97 points, or 1.37%, standing at 35,735.50.
Significant losses are being experienced by Mitsubishi UFJ Financial, Mizuho Financial, Sumitomo Mitsui Financial and Softbank Group in the financial sector.
Sumco Corp, Advantest Corp. and Dainippon Screen Manufacturing have fallen by 4.3 to 5.2%. Ajinomoto Co., Tokyo Electric Power, Tokyo Electron, Mitsubishi Heavy Industries and Nissan Motor are experiencing a 2 to 3% decrease.
There has also been a noticeable decline in Sony Inc, Fujikura, Fuji Electric, TDK, Nippon Yusen KK and J Front Retailing.
Motor vehicle stocks such as Nissan Motor, Suzuki Motor, Toyota Motor and Yamaha Motor Company are notably lower.
On the flip side, Pacific Metals is witnessing a remarkable rise by almost 14%. Rakuten Inc., Nippon Sheet Glass, Panasonic and Toto have increased between 2 to 4%.
Takara Holdings, Shiseido, JGC Corp., Chiyoda Corp, NGK Insulators and Matsui Securities are experiencing a 1 to 2% increase.
The South Korean market's KOSPI is in positive territory, gaining 23.43 points or 0.95% at 2,493.77.
Battery makers are contributing significantly to the gains in the South Korean market.
LG Energy Solution's shares are up nearly 4% following a surge in quarterly earnings.
Shares in Samsung and SK Innovation are experiencing about 4% and 3.7% gains, respectively. POSCO Holdings has advanced nearly 3%, and LG Chem has risen about 4.5%.
In Hong Kong, the Hang Seng Index is down by 192.46 points or 1.19%, standing at 16,019.50.
Galaxy Entertainment is up more than 3%. CNOOC, Wharf Real Estate, Sino Biopharmaceuticals, Sands China, Bank of East Asia and Swire have increased between 1.5 and 2.3%.
Meanwhile, Lenovo has significantly dropped by over 8%. Aac Technologies is down by nearly 6%, and Sunny Optical Technology has decreased around 4.4%. Xiomi, China Life Insurance and Shenzhou International Holdings have also witnessed a notable downturn.
The Shanghai Composite Index has seen a decrease of 10.97 points or 0.38%, standing at 2,895.14.
China Fortune is rising nearly 10%. Jinzhou Port, Poly Real Estate, Air China, China Minsheng Bank, Ningbo Port, China Grand Auto and Shanghai Petrochemicals have increased by 1 to 2.3%.
Sinopec has seen a more than 3% decline. China Railway, Yonyou Soft, China Life Insurance, China International, China Pacific Insurance and New China Life also find themselves in negative territory.
In the New Zealand market, Steel Tube has dropped by 4.2%. Meridian Energy and Summerset are among other notable losers. Infratil, Goodman Property, Air New Zealand and Vector have gained moderately.
New Zealand's NZX 50 has fallen by 26.90 points or 0.23%, standing at 11,862.73
The markets in Malaysia and Singapore are experiencing modest gains, while the Australian market is closed for Australia Day celebrations.
