Asia report: Tokyo rises as rest of region slides
By Josh White
Date: Tuesday 09 Dec 2025
(Sharecast News) - Asia-Pacific equities mostly declined on Tuesday as investors took their cue from overnight losses on Wall Street and positioned cautiously ahead of the US Federal Reserve's final policy meeting of the year on 10 December.
The Fed is widely expected to cut rates by another 25 basis points, lowering the Federal Funds rate to a range of 3.5% to 3.75%, though analysts anticipated policymakers would adopt a more data-dependent stance thereafter.
Patrick Munnelly at TickMill noted that "Wall Street's four-day rally stalled as US stocks dipped, with the S&P 500 falling 0.3% after nearing a record high," adding that "US Treasuries joined a global bond selloff ahead of the Federal Reserve's final 2025 meeting, where a rate cut is expected, though uncertainty about 2026 reductions weighs on investors."
Tokyo the only gainer in a regional sea of red
Japan was the region's sole bright spot.
The Nikkei 225 inched up 0.14% to 50,655.10, supported by gains in Konica Minolta, Yaskawa Electric and Shionogi & Co, which rose 5.72%, 4.61% and 4.6%, respectively.
The Topix was broadly flat, adding 0.02% to 3,384.92.
Munnelly observed that "in Japan, a five-year government bond auction saw lukewarm interest," while "the Japanese yen regained stability after Monday's sharp drop, triggered by a magnitude-7.6 earthquake off the country's northeast coast," reflecting how local dynamics helped offset global macro caution.
Mainland Chinese markets fell, with the Shanghai Composite down 0.37% at 3,909.52 and the Shenzhen Component 0.39% lower at 13,277.36.
Jiangsu Wuzhong Industrial slumped 67.74%, while Metallurgical Corporation of China sank 10.03% after agreeing to sell non-core assets to its controlling shareholder China Minmetals at a loss, with disposals valued at CNY 60.7bn and expected to result in a CNY 2.52bn yuan.
Anhui Gourgen Traffic Construction also dropped 10.03% as several Sunriver Group-linked firms continued to face investor scrutiny over delayed wealth management product payments.
Hong Kong's Hang Seng Index fell 1.29% to 25,434.23, weighed down by Xinyi Glass Holdings, Longfor Properties and Pop Mart International, which dropped 8.11%, 5.97% and 5.04%, respectively.
Munnelly noted that global nerves had spread, remarking that "global stocks followed Wall Street's lead, taking a slight hit, and Treasury yields climbed higher as global traders grew uneasy about the Federal Reserve's approach to easing beyond this week's widely expected interest rate cut," contributing to selling pressure across risk assets.
South Korea's Kospi slipped 0.27% to 4,143.55.
Kolon Mobility Group tumbled 29.97% as it moved closer to a 7 January delisting, while THN and Dae-Il Corporation declined 9.84% and 9.19%.
Sydney falls after RBA decision
Australia's S&P/ASX 200 fell 0.45% as the Reserve Bank of Australia kept the cash rate at 3.6%, prompting markets to price a higher probability of a rate hike in 2026 amid persistent inflation pressures.
Lynas Rare Earths, Super Retail Group and Life360 lost 5%, 4.55% and 3.89%.
Fresh survey data from NAB showed business conditions softened to +7 from +9 in November, while business confidence slid to +1 from +6.
Munnelly noted that "Australian bonds tumbled after hawkish remarks from the nation's central bank," highlighting the region's sensitivity to interest-rate expectations.
New Zealand's S&P/NZX 50 dipped 0.23% to 13,454.78, led lower by Eroad, Vista Group International and SkyCity Entertainment Group, which declined 3.98%, 3.02% and 2.4%, respectively.
Dollar stronger on the yen, weaker against its antipodean cousins
In currencies, the yen weakened, with the dollar last up 0.17% to trade at JPY 156.18.
The greenback slipped against the Aussie and Kiwi dollars, however, down 0.28% to AUD 1.5054 and off 0.27% at NZD 1.7267.
Munnelly said "the dollar softened slightly, while Bitcoin slipped by roughly 1.5% before stabilising," adding to signs of investor caution ahead of the Fed.
Oil prices firmed, with Brent crude futures last up 0.34% on ICE at $62.70 per barrel, and the NYMEX quote for West Texas Intermediate gaining 0.39% to $59.11, as Munnelly noted that "oil prices steadied following their sharpest drop in nearly three weeks, as investors await upcoming data to gauge the extent of the supply surplus."
Reporting by Josh White for Sharecast.com.
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