Japanese markets opened lower on Wednesday, mirroring a sell-off on Wall Street triggered by hotter-than-expected U.S. inflation data.
The Nikkei 225 slipped 0.5% in early trading, shedding 344.6 points to start at 62,398.02 as economic pressure continues to mount amid climbing global oil prices due to the ongoing conflict in Iran.
The U.S.' April inflation accelerated, driven primarily by the rising costs of fuel and food, with the headline CPI rising 3.8% year-over-year, marking its highest level since May 2023.
Core CPI, which excludes volatile food and energy sectors, increased by 2.8%.
Elsewhere, President Donald Trump indicated that his upcoming summit with Chinese President Xi Jinping will lean heavily toward trade negotiations.
Despite the regional volatility, Trump suggested that the Iran-Israel conflict would take a backseat to economic discussions during the high-level meetings scheduled for this week.