AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
Asia equities rise with support from strong US tech-led performance
Japan's Nikkei jumps after soft Tokyo CPI tempers rate hike expectations
Broader sentiment cautious ahead of looming US tariff deadline
Asian stock markets ended the week on a firmer note, taking cues from a tech-driven rally on Wall Street, while Japan’s equities outpaced regional peers on softer-than-expected inflation data. The movement across major indices came as part of a broader global reaction to easing policy concerns and stabilizing geopolitical tensions.
Australia’s All Ordinaries edged slightly higher, with strength in energy and resources sectors partially offset by subdued movement in financials. Gains across the region remained measured as investors awaited further clarity on trade dynamics.
Tokyo Stocks Lead on Softer Inflation Data
Japan’s Nikkei index climbed to its highest level in five months, supported by robust performance in heavyweight technology names. The broader TOPIX index also posted notable gains. Shares of Tokyo Electron (TYO:8035), Sony Group (TYO:6758), and SoftBank Group (TYO:9984) led the rally as easing inflation data appeared to reduce expectations for near-term monetary tightening by the Bank of Japan.
Tokyo’s latest consumer price index report showed moderation in headline inflation, prompting markets to scale back assumptions on interest rate shifts. The inflation readout, closely watched as a proxy for broader national trends, reinforced speculation of a more cautious stance from Japan’s central bank.
US Sentiment Bolsters Regional Outlook
Wall Street’s upbeat close in the prior session added strength to Asian market sentiment. Gains in large-cap technology and banking stocks helped sustain optimism, pushing key US indices closer to their recent highs. That positive momentum extended across Asia, though in a more tempered fashion due to region-specific headwinds.
Futures trading in Asia indicated flat moves for US indices, suggesting a cautious stance ahead of major economic and trade updates expected early next month.
Geopolitics and Trade Deadlines Limit Broader Momentum
Despite improved sentiment, gains in many Asian benchmarks remained capped as market participants awaited updates on upcoming tariff measures. The approaching deadline for US-imposed reciprocal tariffs has led to a more conservative approach in equity positioning.
Officials have noted that a finalized trade understanding between the US and China has been reached, with additional pacts involving other trade partners on the horizon. Meanwhile, de-escalation of tensions in the Middle East, following a recent ceasefire agreement, provided stability across commodities and regional equities.
Mixed Performances Across Asia-Pacific Markets
Outside of Japan, market action was mixed. Hong Kong’s Hang Seng Index registered modest gains, while China’s CSI 300 index and Shanghai Composite hovered near neutral territory. Australia’s ASX 200 maintained levels near recent highs, reflecting resilience in mining and energy sectors.
