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Asia-Pacific Braces for Potential Downturn as U.S. Inflation Data Looms
26 Aug
Summary
- Asia-Pacific markets set to open lower on Wall Street losses
- Investors await key U.S. inflation report for Fed rate cut clues
- South Korea-U.S. trade deal talks continue amid 15% tariff threat

As of August 26th, 2025, the Asia-Pacific region is bracing for a potential market downturn, with major indices set to open lower on Tuesday. This comes as investors closely monitor the fallout from losses on Wall Street the previous day.
A key focus for the markets will be the release of a crucial U.S. inflation report, which is expected to provide crucial insights into the Federal Reserve's future rate-cut decisions. Analysts are closely watching this data point for clues on the central bank's monetary policy path.
Separately, the ongoing discussions between the South Korean and U.S. presidents over a trade deal framework announced last month will also be in the spotlight. The deal stipulates a 15% tariff on Korean exports to the U.S., a development that is likely to weigh on investor sentiment in the region.
Despite the broader market jitters, Chinese stocks have bucked the trend, with the mainland's CSI 300 index extending its gains for a fourth consecutive session on Monday. Additionally, the Nasdaq Golden Dragon China Index, which tracks Chinese companies listed in the U.S., also ended the previous trading day higher, defying the losses seen in the key Wall Street benchmarks.