Asian stock markets mostly dipped on Thursday following a subdued session on Wall Street, where the S&P 500 extended its record-setting run. Regional investors remain wary of U.S. President Donald Trump’s tariff policies, which continue to dominate market sentiment.
In Japan, the Nikkei 225 index fell by 1.5% to 38,579.71. Australia’s S&P/ASX 200 dropped 1.4% to 8,297.60, and South Korea’s Kospi slipped nearly 0.5% to 2,659.22. Hong Kong’s Hang Seng index declined 1.6%, ending the day at 22,569.12, while the Shanghai Composite retreated 0.2% to 3,345.52. Investors reacted to China’s decision to keep its benchmark interest rate unchanged, a move the government said was aimed at ensuring financial stability.
Stephen Innes, managing partner at SPI Asset Management, highlighted ongoing concerns, noting that “the yuan has been under siege, with foreign-exchange outflows surging last month as Trump’s tariff rhetoric sent shockwaves through markets.”
Meanwhile, U.S. markets had a more positive day. The S&P 500 rose 0.2%, following its all-time high set the previous day. The Dow Jones Industrial Average added 71 points, or 0.2%, while the Nasdaq composite inched up by 0.1%.
Microsoft was the biggest contributor to the S&P 500’s growth, rising 1.3% after unveiling its “quantum processing unit,” a breakthrough that could lead to significantly more powerful computers. Tesla, led by Elon Musk, gained 1.8% after electric truck maker Nikola filed for Chapter 11 bankruptcy protection, causing its stock to plummet by 39.1%.
In other economic news, a report revealed that U.S. homebuilders broke ground on fewer houses than expected last month, signaling a slowdown in the housing market. High mortgage rates have made homeownership less affordable for many potential buyers, despite the Federal Reserve’s interest rate cuts in September aimed at stimulating the economy.
On the bond markets, the yield on the 10-year U.S. Treasury note eased slightly, dropping to 4.53% from 4.55% the previous day. This marked a shift from earlier in the year when the yield was below 3.70%, and it had recently approached 4.80%.
Both bond and stock markets have become more resilient to tariff-related uncertainties, as investors increasingly view Trump’s tariff threats as negotiation tactics rather than imminent economic disruptions.
In commodity markets, benchmark U.S. crude oil slipped 32 cents to $71.93 per barrel, while Brent crude, the international benchmark, lost 21 cents, settling at $75.83 per barrel.
The U.S. dollar weakened slightly against the Japanese yen, dropping to 150.60 from 151.37 yen. The euro strengthened marginally, trading at $1.0432, up from $1.0428.
Related topic:
Milei’s Crypto Scandal Shakes Presidency Amid Investor Losses
Alibaba Shares Surge on AI Buzz, Reviving Investor Confidence
Asia Stocks Mixed as Chinese Tech Shares Fall After Brief Rally
