Japan's Nikkei hits a new record as inflation accelerates; Hong Kong stocks fall nearly 2%

This is CNBC's live blog covering Asia-Pacific markets.

Japan's Nikkei 225 briefly crossed41,000 to hit a fresh all-time high on Friday as the country's inflation accelerated in February, while other Asia-Pacific markets declined.

Japan's headline inflation rate for February came in at 2.8%, climbing from the 2.2% seen in February. Core inflation — which strips out prices of fresh food — was at 2.8% compared with 2% in the previous month.

The BOJ, in its monetary policy statement on Tuesday said that "the price stability target of 2 percent would be achieved in a sustainable and stable manner."

However, the Nikkei retreated to close just below the 41,000 mark, ending up 0.18% at 40,888.43. The Topix also hit a fresh record, gaining 0.61% to 2,813.22.

Hong Kong's Hang Seng index plunged as much as 3%, dragged by electric vehicle stocks, but pared losses and were last down 1.88%. Mainland China's CSI 300 fell 1.01% to close at 3,545.

The Hang Seng Tech index shed 3.18%, with shares of Li Auto plunging 10.44% on Friday after the EV maker cut its first-quarter deliveries forecast.

South Korea's Kospi closed 0.23% lower at 2,748.56 after leading gains in Asia on Thursday, while the small-cap Kosdaq was ended down 0.03% at 903.98.

In Australia, the S&P/ASX 200 slipped 0.15% to 7,770.6, while the Taiwan Weighted Index traded close to the flatline after the central bank raised its policy rate in a surprise move on Thursday.

Overnight in the U.S., all three major indexes hit fresh records, continuing the rally from Thursday after the U.S. Federal Reserve held rates steady and maintained its rate cut forecast for 2024.

The Dow Jones Industrial Average jumped 269.24 points, or 0.68%, to close at 39,781.37. The S&P 500 advanced 0.32% to end