Asia-Pacific Markets Decline Amid U.S. Inflation and Growth Concerns

Highlights:

• Asian stock markets mostly fall as U.S. economic data signals persistent inflation and slower economic growth.
• Indian markets struggle, with Nifty 50 down 1.08% and BSE Sensex losing 1.03%.
• Hong Kong’s Hang Seng Index declines 0.58%, while Shanghai’s CSI300 falls 0.22%.
• Singapore inflation hits its lowest rate since February 2021, rising just 1.2% year-on-year.
• Olam Group shares surge over 8% after selling a $1.78 billion stake in Olam Agri to Salic.
• U.S. stock markets experience sharp declines, with the Dow Jones plunging 748 points, marking its worst session of 2025.

Asian Markets React to U.S. Economic Signals

Asia-Pacific stock markets saw broad declines on Monday as Wall Street recorded its worst session of the year last Friday. Investors reacted to weak U.S. economic data, which raised concerns over persistent inflation and slowing economic growth.

• China’s CSI300 index dropped 0.22%, closing at 3,969.72.
• Hong Kong’s Hang Seng index declined 0.58% to 23,341.61, after reaching a three-year high in the previous session.
• India’s Nifty 50 lost 1.08%, while the BSE Sensex fell 1.03% in midday trading.
• South Korea’s Kospi fell 0.35%, with the Kosdaq index slipping 0.17%.
• Australia’s S&P/ASX 200 gained 0.14%, breaking a five-session losing streak.
• Japan’s stock markets remained closed due to a public holiday.

Singapore Inflation Falls to Lowest Level Since 2021

Singapore’s headline inflation climbed just 1.2% year-on-year in January, marking the slowest pace since February 2021.

• Core inflation, which excludes private transport and accommodation costs, rose 0.8% year-on-year, the lowest reading since June 2021.
• The data comes after Singapore’s 2025 budget announcement, which outlined support measures for businesses and households to manage cost-of-living pressures.

Olam Group Soars 8% on $1.78 Billion Stake Sale to Salic

Shares of Olam Group surged over 8% after the agribusiness giant announced the sale of a 64.57% stake in Olam Agri to Saudi Agriculture & Livestock Investment (Salic).

• The company will first offload 44.58% (1.51 billion shares) for $1.78 billion, giving Salic an 80.01% controlling stake in Olam Agri.
• Olam Group retains a 19.99% stake, with an option to sell the remainder after three years.

U.S. Stock Markets Tumble on Economic Fears

Major U.S. stock indices closed sharply lower on Friday as investors reacted to fresh economic data and concerns over inflation and trade policies.

• Dow Jones Industrial Average lost 748 points (-1.69%), closing at 43,428.02, marking its worst session of 2025.
• S&P 500 dropped 1.71%, ending at 6,013.13.
• Nasdaq Composite fell 2.2%, closing at 19,524.01.

The sharp declines were driven by fears of further economic policy moves by U.S. President Donald Trump, who has proposed a series of tariffs and trade restrictions since taking office.