Asian Stock Markets Show Mixed Performance
On Friday, Asian stock markets showed a mixed performance, following a positive session on Wall Street. The upbeat sentiment was fueled by strong earnings results and solid U.S. economic data. Investors remained cautious as they assessed the impact of recent economic indicators and geopolitical developments.
Gold prices continued to decline, falling below $3,340 per ounce. This trend positioned gold for its first weekly loss in three weeks. Despite this, the precious metal remained relatively stable compared to previous fluctuations, with market participants closely monitoring central bank policies and inflation trends.
In Japan, the Nikkei 225 index closed down 0.32% at 40,034, while the broader Topix Index rose 0.3% to 2,847. This marked the second consecutive day of gains, as investors analyzed the latest inflation data. The Japanese yen weakened against the U.S. dollar, trading at 148.54 per dollar. This decline came after polls suggested that Prime Minister Shigeru Ishiba’s coalition might lose its majority in the upcoming election on Sunday.
Japan’s annual inflation rate dropped to 3.3% in June 2025, slightly lower than the 3.5% recorded in the previous month. However, core consumer price index (CPI) still stood at 3.3%, exceeding the central bank’s 2% target. Food prices increased by 7.2% year-on-year, marking the fastest pace since March. This rise in food costs highlighted ongoing concerns about inflationary pressures in the region.
A new 25% U.S. tariff on Japanese goods, set to take effect in August, added to existing levies on auto exports—Japan’s largest export to the U.S. This development has raised concerns among Japanese exporters and could impact trade relations between the two countries.
Investors are now turning their attention to Japan’s upcoming Upper House election, scheduled for July 20, 2025. The outcome of this election could have significant implications for domestic policy and international trade relations.
In China, the Shanghai Composite Index rose 0.38%, reflecting improved investor confidence. This gain was partly attributed to U.S. President Donald Trump’s more moderate stance toward China, which has raised hopes for a potential trade deal. However, the U.S. Commerce Department recently imposed preliminary anti-dumping duties of 93.5% on Chinese graphite imports, citing unfair subsidies. This move could complicate trade relations and affect key industries reliant on battery materials.
Hong Kong’s Hang Seng Index gained 1.00%, reaching 24,734 in early trade. This marked a recovery from two days of losses, as investors took advantage of favorable market conditions. In India, the Sensex fell 0.45%, indicating some uncertainty in the market.
Australia’s All Ordinaries Index climbed 0.83%, rising above 8,690 and reaching a new all-time high. The Australian dollar strengthened to around $0.651, recovering from previous losses. This increase was driven by a surge in iron ore prices, which supported the country’s commodity-dependent economy.
U.S. Market Trends
In the United States, all three major indexes ended higher on Thursday, with strong earnings and robust economic data pushing them toward record highs. The Dow Jones Industrial Average closed up 0.19%, the S&P 500 gained 0.16%, and the Nasdaq rose 0.10%. These gains reflected growing optimism about the U.S. economy and corporate performance.
U.S. stock futures edged higher after Wall Street closed firmer on Thursday, signaling continued momentum in the market. Investors remain focused on economic indicators and corporate earnings reports, which will shape future market movements.
Currency Movements
The Japanese yen, Chinese yuan, Australian dollar, Indian rupee, Hong Kong dollar, and New Zealand dollar all saw fluctuations against the U.S. dollar. These movements were influenced by a combination of economic data, central bank policies, and global market conditions.
Additional Developments in Asia
Japan’s core inflation eased to 3.3% in June, marking the slowest pace since March. Meanwhile, Australia’s unemployment rate rose to 4.3% in June, the highest level in over three years. Japan’s June trade surplus plummeted, with exports contracting again amid U.S. tariffs. In China, GDP growth slowed to 5.2% in the second quarter, slightly exceeding forecasts, but industrial output increased by 6.8%, while retail sales and investment disappointed.
These developments highlight the complex economic landscape across Asia, with each country facing unique challenges and opportunities. As markets continue to evolve, investors will be closely watching for further signals that may influence future trends.
