Geopolitical Tensions and Inflation Impact Asian Markets: Kospi Hits Record High

Geopolitical Tensions Weigh on Risk Appetite Escalating tensions between the United States and Iran have heightened risk perception across global markets.
President Donald Trump's statement that the situation would become clear within 10 days, coupled with his emphasis on a comprehensive deal, has led investors to adopt a cautious stance.
These remarks have hindered recovery efforts in equities and dampened overall risk appetite.
Japan's Inflation Falls Below Target On the macroeconomic front, inflation in Japan slowed to 1.5% in January, marking its lowest level since March 2022.
This figure remains below the Bank of Japan's (BoJ) official 2% target.
Although core inflation also decelerated from 2.4% to 2%, analysts suggest that food price volatility persists and the possibility of a BoJ interest rate hike remains on the table.
Regional Market Performance Following these developments, regional stock markets displayed divergent performances.
In Japan, the Nikkei 225 index decreased by 1.07% to 56,851 points.
Conversely, South Korea's Kospi index rose by 2.31% to 5,808.53 points, reaching a new historic high led by technology companies.
In Hong Kong, the Hang Seng index fell by 0.6% to 26,535 points, while India's Sensex index gained 0.5% to reach 82,894 points.
Chinese markets remain closed due to the Lunar New Year holiday.