Asian stock markets showed mixed performance on Wednesday as investors weighed concerns over potential tariffs and weak inflation data from China. While Japan’s Nikkei 225 rose by 0.5%, China’s Shanghai Composite fell by 1.2% following the release of lower-than-expected inflation figures.

China’s consumer price index (CPI) rose by just 0.8% year-over-year in February, well below market expectations. The weak inflation print has raised concerns about slowing domestic demand and economic growth. Meanwhile, fears of escalating trade tensions and potential tariffs have added to market uncertainty.

“The combination of weak inflation data and tariff worries is creating a challenging environment for investors,” said a market analyst. “China’s economic recovery remains fragile, and any escalation in trade tensions could further dampen sentiment.”

Other Asian markets, including South Korea’s Kospi and Australia’s ASX 200, posted modest gains, reflecting cautious optimism among investors. However, analysts warn that the region’s markets could remain volatile in the coming weeks as geopolitical and economic risks persist.