Asian stock markets ended mixed on Friday, with Chinese shares extending their stellar August rally to multi-year highs, while Japan’s Nikkei 225 slipped on weaker economic data.
Regional sentiment received a mild boost from Wall Street, where the S&P 500 hit another record high. However, gains were capped by caution around Nvidia’s (NASDAQ: NVDA) latest results and investor focus on the upcoming U.S. PCE price index, the Federal Reserve’s preferred inflation gauge. S&P 500 futures slipped 0.1% in Asian hours.
China extends rally after strong August
China’s CSI 300 index gained 0.7% to a three-year high, while the Shanghai Composite added 0.4%, just below a 10-year peak. Hong Kong’s Hang Seng rose 0.7%.
The CSI 300 surged 10.3% in August, while the Shanghai Composite was on track for an 8.1% monthly rise, outperforming regional peers. The rally has been fueled by Beijing’s push for local chipmaking and speculation of further economic stimulus.
Still, chip stocks cooled after a massive run-up. AI chipmaker Cambricon Technologies fell 5% on Friday, though it had doubled in August. Semiconductor Manufacturing International Corp and Hua Hong Semiconductor also slipped in Hong Kong trade.
The Hang Seng underperformed with a 1.6% monthly gain, dragged lower by a late-month tech sell-off. Investors are awaiting earnings from major firms including Alibaba, Industrial and Commercial Bank of China, China Construction Bank, Bank of China, and EV maker BYD.
Next week’s Chinese PMI data will offer further clues on economic momentum and stimulus expectations.
Japan weighed by weak data
Japan’s Nikkei 225 fell 0.4%, while the TOPIX lost 0.5%. Both indexes still gained around 4–5% in August, hitting records earlier in the month.
Friday’s data weighed heavily: industrial output dropped more than expected, retail sales disappointed, and Tokyo CPI confirmed softer inflation. However, sticky core inflation kept bets alive for more Bank of Japan rate hikes.
Other Asian markets
South Korea’s KOSPI fell 0.2% on caution over chip stocks after Nvidia’s mixed results, leaving the index down 1.7% for August. Australia’s ASX 200 slipped 0.1% but was up 2.4% for the month, crossing 9,000 points. Austal Ltd surged 20% after strong earnings and a government contract.
Singapore’s Straits Times Index rose 0.2%.
India pressured by U.S. tariffs
India’s Nifty 50 edged down 0.1%, extending August losses to 1.6%. Markets remained under pressure after Washington imposed 50% tariffs on Indian imports this week, aimed at curbing New Delhi’s Russian oil purchases.
India has rejected U.S. accusations of funding Moscow’s war and signaled continued Russian oil buying. Analysts warn tariffs and supply risks could weigh on India’s economy. GDP data due Friday is expected to show growth cooling even before tariffs take effect.
