Asian Stocks Mixed as Fed Rate Cut Bets Grow; Japan’s Nikkei Hits Record High
Asian stock markets traded mixed on Tuesday. Most regional indices gained on growing expectations that the U.S. Federal Reserve will cut interest rates next week. Meanwhile, Japan’s Nikkei 225 surged to a fresh record high after Prime Minister Shigeru Ishiba’s resignation.
Wall Street ended modestly higher on Monday, with the NASDAQ Composite closing at a record peak. U.S. stock futures edged up during Asian hours on Tuesday, helping to support broader market sentiment.
Japan’s Nikkei Soars After PM Ishiba Resigns
The Nikkei 225 jumped as much as 1.2% to a record 44,185.7 points before trimming gains to trade 0.1% higher at 43,673.6 by 04:05 GMT. The index was on track for its fourth consecutive day of gains, while the broader TOPIX remained flat.
The rally followed the resignation of Prime Minister Shigeru Ishiba, who stepped down after major election losses and rising dissent within his party. Markets expect his successor to adopt more expansionary fiscal and monetary policies, which could delay additional tightening by the Bank of Japan.
Equities also drew strength from revised GDP data showing that Japan’s economy grew at a 2.2% annualized rate in the second quarter, up from an earlier estimate of 1.0%. Strong private consumption and inventory gains drove the revision. On a quarterly basis, GDP rose 0.5%, exceeding the initial 0.3% forecast.
Sentiment was further boosted by news of a U.S.-Japan trade agreement that will cut tariffs on Japanese auto exports by mid-September.
Hong Kong and South Korea Lead Regional Gains
Hong Kong’s Hang Seng index jumped 1.5% in early trading, supported by tech stocks after the Nasdaq’s record close. By mid-morning, the Hang Seng was still up 0.8%, while the Hang Seng TECH sub-index outperformed.
South Korea’s KOSPI gained 1.1%, lifted by strong performances from major chipmakers. Samsung Electronics rose 1.2%, and SK Hynix added 3.2%.
Other Asian Markets Mixed
China’s Shanghai Composite slipped 0.3%, while the CSI 300 index dropped 0.4%. Australia’s S&P/ASX 200 fell 0.7%, pressured by financials. ANZ Group shares declined 0.7% after announcing plans to cut 3,500 jobs and take a restructuring charge of A$560 million.
India’s Nifty 50 rose 0.3% at the open, while Singapore’s Straits Times Index edged down 0.3%.
