Asia report: SoftBank surge leads Japan bourse higher
By Josh White
Date: Thursday 11 Sep 2025
(Sharecast News) - Asia-Pacific equities delivered a mixed performance on Thursday, with Japanese, South Korean and Chinese markets advancing while Australian, Hong Kong and New Zealand bourses retreated.
Patrick Munnelly, market strategy partner at TickMill, said "US and European futures showed limited appetite for directional trade overnight, ahead of the highly anticipated US inflation report scheduled for later Thursday, while Asian markets witnessed gains driven by tech giants.
"Major stock indexes in Japan, South Korea, and mainland China advanced, whereas those in Australia and Hong Kong declined."
SoftBank leads Japan higher on mixed day for region
Japan led regional gains as the Nikkei 225 climbed 1.33% to a record 44,422.00, buoyed by a surge in heavyweight tech names after overnight gains on Wall Street.
SoftBank Group jumped 9.98%, extending a rally on reports that OpenAI has agreed a roughly $300bn, five-year cloud-computing deal with Oracle.
Dainippon Screen Manufacturing rose 6.41% and Mitsui Mining and Smelting added 4.85%.
The broader Topix index edged up 0.22% to 3,147.76.
Chinese shares also rallied, with the Shanghai Composite up 1.65% at 3,875.31 and the Shenzhen Component surging 3.36% to 12,979.89.
Fujian Qingshan Paper Industry, Jinko Power Technology and Sanjiang Shopping Club led gains, all climbing around 10%.
In South Korea, the Kospi 100 rose 0.91% to 3,402.06, supported by Korea Aerospace Industries, Sam Yang Foods and LG Uplus, each up more than 5%.
Elsewhere, the Hang Seng Index in Hong Kong fell 0.43% to 26,086.32, dragged down by sharp losses for Hansoh Pharmaceutical Group, CSPC Pharmaceutical Group and WuXi AppTec.
Australia's S&P/ASX 200 slipped 0.29% to 8,805.00 as Nine Entertainment Co slumped 9.92% alongside steep falls for Neuren Pharmaceuticals and Perpetual.
Across the Tasman Sea, New Zealand's S&P/NZX 50 dropped 0.35% to 13,229.15, weighed by declines in KMD Brands, Sanford and Air New Zealand.
Munnelly noted that "MSCI's Asia-Pacific index held steady after five consecutive days of growth.
"Treasuries remained stable following Wednesday's broad-based increases, while Australian and New Zealand government bonds climbed on Thursday."
In currency markets, the dollar was last up 0.31% on the yen to trade at JPY 147.91, as it strengthened 0.14% against the Aussie to AUD 1.5142, and advanced 0.15% on the Kiwi, changing hands at NZD 1.6861.
Munnelly said "the dollar index saw minimal change, with the Yen maintaining strength against the dollar."
Oil prices softened, with Brent crude futures last down 0.61% on ICE at $67.08 per barrel, and the NYMEX quote for West Texas Intermediate off 0.74% at $63.20.
Investors turn to US CPI reading
In economic news, there were no major data releases from the Asia-Pacific region on Thursday, leaving investors focused on the upcoming US consumer price index report, seen as pivotal for the Federal Reserve's next policy move.
"Following a softer-than-expected PPI report on Wednesday, attention now shifts to the August consumer price index release," said Munnelly.
"Both headline and core CPI are projected to rise by 0.3% month-over-month, which would increase the annual CPI rate to 2.9% from 2.7%, while the ex-food-and-energy measure is expected to remain steady at 3.1% year-over-year."
The August CPI data was due later in the global day, with consensus forecasts pointing to a 2.9% year-on-year rise in headline inflation and a 3.1% increase in the core measure excluding food and energy.
Both would mark slight upticks from the previous month.
Munnelly noted that "the moderation in shelter costs has helped mask tariff impacts thus far, as hinted at by the PPI data, and this trend may continue.
"Companies are absorbing these costs through reduced profit margins, potentially curbing investment and hiring.
"This dynamic could provide the Federal Reserve, which has shifted its focus to labor market risks, greater confidence to overlook short-term inflation persistence when setting policy."
The report was coming at a sensitive moment for the Fed, which has entered its pre-meeting media blackout.
A weaker-than-expected non-farm payrolls report and a sharp downward revision to earlier jobs data this week have underlined a slowing labour market, while producer price inflation has also eased.
The combination had fuelled speculation that a softer CPI print could push the Fed towards a larger-than-usual 50 basis point rate cut, though markets currently assigned just a 10% probability to such a move.
US inflation had largely stalled between 2.3% and 3.0% over the past year, well above the Fed's 2% target, and core CPI had edged higher after dipping as low as 2.8% earlier in the year.
That left policymakers balancing stubborn price pressures against signs of weakening employment, a tension that has constrained expectations for aggressive monetary easing.
A downside surprise in the CPI reading could ease that dilemma and open the door to steeper rate cuts, while a hotter print would likely dampen such hopes.
Reporting by Josh White for Sharecast.com.
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