Asia markets open mixed, EV maker shares resume selloff amid Tesla’s slowdown warning

Asia-Pacific markets were mixed Friday as investors digested inflation data from Tokyo. Shares of electric vehicle makers in the region dropped for a second day, unable to shrug off worries sparked by bellwether Tesla’s slowdown warning.

Hong Kong-listed shares of Xpeng and Li Auto fell about 2.5% each, while BYD fell 3.5%. The broader Hang Seng Index dropped 0.4%, while the Hang Seng Tech index, housing most EVs, shed 1.7%.

Tesla shares fell 12% in U.S. trading on Thursday after the EV giant missed earnings expectations and warned of a slowdown in 2024.

China’s CSI 300 dropped 0.3%, retreating from a 2% bounce in the previous session after property stocks were lifted by Beijing’s plans to boost liquidity in the beleaguered sector.

Japan’s Nikkei 225 slipped 1% after the January inflation reading from Tokyo came in softer compared to December. Tokyo’s data is widely considered to be a leading indicator for nationwide inflation. The broad based Topix fell 0.9%

Tokyo’s headline and core inflation rate for January came in at 1.6%, compared with 2.4% and 2.1%, respectively, in December.

South Korea’s Kospi rose 0.8%, while the small-cap Kosdaq rose 1.5%.

Overnight in the U.S., all three major indexes gained, with the S&P500 index advancing 0.53% to reach a record high of 4,894.16, notching a six-day winning streak.

The Dow Jones Industrial Average added 0.64%, while, the Nasdaq Composite rose 0.18%, weighed down by a post-earnings tumble in Tesla shares.

— CNBC’s Alex Harring and Brian Evans contributed to this report.

Correction: This story has been updated to reflect that Australia markets are closed for a public holiday on Friday.