Asia report: Markets mixed after Wall Street tech rally
By Josh White
Date: Tuesday 09 Sep 2025
(Sharecast News) - Asia-Pacific equities delivered a mixed performance on Tuesday as investors digested Wall Street's overnight gains, with regional markets diverging on local drivers.
Patrick Munnelly, market strategy partner at TickMill, noted that "global markets maintained their upswing for the fifth consecutive day on Tuesday, fuelled by optimism surrounding a potential reduction in US interest rates.
"This sentiment spilt over to Asia, sparking a rally in technology stocks."
Markets mixed on back of Wall Street's tech gains
In Japan, the Nikkei 225 gave up early strength to close down 0.41% at 43,463.00, having touched a record high earlier in the session.
Munnelly said that "in Japan, markets reacted to fallout from prime minister Ishiba's resignation, with the Nikkei 225 hitting a fresh intraday peak on Tuesday before pulling back.
"Japanese government bonds strengthened after Monday's decline, as Ishiba's departure heightened expectations for more accommodative fiscal policies."
Losses were led by Mitsui Mining and Smelting, which fell 6.69%, Citizen Holdings, down 5.53%, and Fujikura, off 4.8%.
The broader Topix index slipped 0.51% to 3,122.12.
Chinese equities retreated, with the Shanghai Composite down 0.51% at 3,807.29 and the Shenzhen Component shedding 1.23% to 12,510.60.
Heavy losses came from Henan Thinker Automatic Equipment, which slumped 10.5%, Zhejiang Huahai Pharmaceutical, off 10%, and Shanghai Highly Group, down 9.98%.
Munnelly pointed out that "China's export growth remained resilient in August despite US tariffs, with shipment values rising 4.4% year-on-year, pushing total exports to a record $3.72trn on a 12-month basis.
"While exports to the US dropped 33.1% to $316bn, China offset losses by boosting trade with Europe and redirecting goods through transhippers like Malaysia, Indonesia, Thailand, and Vietnam."
Hong Kong outperformed, with the Hang Seng Index advancing 1.19% to 25,938.13.
Gains were driven by healthcare and lifestyle names, including Alibaba Health Information Technology, up 10.02%, JD Health International, ahead 6.42%, and China Resources Mixc Lifestyle, which gained 6.1%.
Munnelly noted that "MSCI's global stock index appeared poised to close at another record high, with major tech players like TSMC and Alibaba driving gains in Asian markets.
"Share prices climbed in South Korea, Taiwan, and Hong Kong."
South Korea's Kospi 100 rose 1.5% to 3,304.88, lifted by strong moves in financials and chemicals.
Mirae Asset Daewoo Securities jumped 11.68%, Korea Investment Holdings climbed 6.79%, and LG Chemicals added 6.35%.
Australia's S&P/ASX 200 fell 0.52% to 8,803.50, weighed by IperionX, which sank 9.96%, BSP Financial Group, down 4.55%, and Spark New Zealand, which lost 4.27%.
In New Zealand, the S&P/NZX 50 eased 0.21% to 13,253.73, with KMD Brands falling 5.56%, Spark New Zealand down 4.21%, and EBOS Group slipping 2.22%.
On the currency front, the dollar weakened against regional peers, falling 0.73% on the yen to trade at JPY 146.43, 0.42% against the Aussie to AUD 1.5107, and 0.29% on the Kiwi to change hands at NZD 1.6785.
Oil prices edged higher, with Brent crude futures last up 0.71% on ICE at $66.49 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.79% to $62.75.
Munnelly observed that "oil prices rose for the second straight day, as investors assessed the impact of Saudi Arabia's decision to lower prices for most of its oil grades, potentially signalling reduced demand.
"Meanwhile, iron ore prices climbed for the sixth consecutive day, on track for their strongest close in over six months, driven by expectations of increased demand from China."
Consumer confidence falls in Australia, business sentiment more resilient
Australian economic sentiment showed a mixed picture on Tuesday, with consumer confidence softening even as business conditions continued to improve.
The Westpac-Melbourne Institute Consumer Sentiment Index fell 3.1% to 95.4 in September from 98.5 in August, retreating after a brief boost from the Reserve Bank of Australia's third 25 basis point rate cut last month.
While the index remained above levels seen earlier this year, it had slipped back into "cautiously pessimistic" territory.
Analysts noted that concerns over the economic outlook and reduced expectations for further policy easing weighed on households, even as finances continued to improve and house price expectations hit a 15-year high.
News recall data showed that consumers perceived inflation as less prominent but more unfavourable than in June, while budget and taxation issues drew the highest recall and were viewed more negatively following the federal election.
Business sentiment meanwhile painted a more resilient picture.
The NAB Business Confidence Index eased to 4 in August from 8 in July, a three-month low, but business conditions strengthened to 7 from 5.
Sales held steady at 12, profitability rose to 4 from 2, and employment improved to 6 from 3.
Forward orders edged into positive territory for the first time in two years, while price pressures eased significantly, with purchase costs rising at the slowest pace since 2021.
Retail price growth halved to 0.5% and labour cost growth moderated to 1.5% from 1.9%.
NAB chief economist Sally Auld said regions and industries that had faced headwinds were showing signs of improvement, adding to confidence that the economy is on a stronger trajectory in the second half of 2025.
Reporting by Josh White for Sharecast.com.
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