Japanese equities experienced a volatile decline, while South Korean shares reached a new peak. On February 20, stock markets in Japan and South Korea opened with mixed results. Japan's market saw a significant downturn, with the Nikkei 225 index widening its loss to 1.3%, last trading at 56,761.57 points.

Data released on February 20 by Japan's Ministry of Internal Affairs and Communications showed the country's core Consumer Price Index (CPI) rose 2% year-on-year in January. This marks the smallest increase since January 2024, matching expectations but down from the previous 2.4% rise. The overall CPI increased by 1.5% year-on-year, falling below 2% for the first time since March 2022, slightly below the expected 1.6% and down from the prior 2.1%.

In individual stock movements, Japanese pharmaceutical shares declined. Sumitomo Pharma experienced a sharp drop, falling more than 10% at one point. This follows the official launch of the TrumpRx.gov website by former President Donald Trump on February 5, after 16 of the world's largest pharmaceutical companies agreed to provide Americans with drugs at "most favored nation" prices in exchange for U.S. tariff exemptions.

Other notable decliners included Nomura Holdings, All Nippon Airways, Tokyo Electron, and SoftBank Group. In related news, SB Energy, a subsidiary of SoftBank, is set to develop a $33 billion natural gas project in Ohio. This investment is among the first under Japan's commitment to invest $550 billion in the United States, which also includes a crude oil export terminal in Texas and a synthetic diamond processing plant in Georgia.

Meanwhile, South Korea's stock market reached a new historic high. The KOSPI index rose 0.77% to 5,721.04 points during early trading. Major stocks such as Samsung Electronics, SK Hynix, and Hyundai Motor underwent adjustments, while Doosan Enerbility, Hanwha Aerospace, and Hyundai Heavy Industries saw gains.