Asian markets displayed mixed performance on Tuesday, May 27, 2025, as investors remained cautious. This hesitancy is fueled by anticipation surrounding updates on trade negotiations and the impending release of US CPI inflation data, which are crucial indicators for potential Federal Reserve interest rate adjustments.
The Nikkei 225 experienced a slight dip of 0.2% to 37,451.60, influenced by the Bank of Japan's indication of possible interest rate hikes due to rising inflationary pressures. Similarly, the Kospi in South Korea fell by 0.4% to 2,632.93, and Taiwan's Taiex decreased by 0.6%. Hong Kong's Hang Seng, however, bucked the trend with a gain of 0.3% to 23,359.94, while the Shanghai Composite remained relatively stable at 3,346.48.
Currency markets also reflected these shifts, with the US dollar weakening against the yen, trading at 142.23, and the euro edging up to $1.1403. These movements underscore the market's sensitivity to both trade developments and monetary policy signals.