Last updated on August 23, 2025
TOKYO – Asian markets climbed on Thursday, with Japanese stocks reaching record highs, spurred by strong tech gains on Wall Street, positive corporate earnings, and rising expectations of US interest rate cuts.
Investor sentiment also received a boost from the potential meeting between US President Donald Trump and Russian President Vladimir Putin to discuss the Ukraine conflict. While this helped lift the euro, it weighed on oil prices as traders evaluated the prospects for easing sanctions on Moscow.
The British pound held firm near a one-week high ahead of the Bank of England’s policy decision later in the day. Markets largely expect a quarter-point rate cut, though attention is focused on a possible three-way split among policymakers.
Meanwhile, traders appeared unfazed by Trump’s latest tariff threats, including a proposed 25% levy on Indian imports of Russian oil and a threatened 100% duty on semiconductors.
Japan’s broad Topix index rose 0.9% to a record peak, with the tech-heavy Nikkei posting similar gains. Taiwan’s benchmark jumped 2.3% to its highest level in over a year, while South Korea’s Kospi added 0.6%.
Hong Kong’s Hang Seng rose 0.4%, and mainland China’s blue-chip CSI300 gained 0.3%. In contrast, Australian shares dipped slightly after hitting an all-time high the previous day.
US stock futures remained firm, with both S&P 500 and Nasdaq futures up 0.3%. On Wednesday, the S&P 500 rose 0.7%, and the Nasdaq Composite climbed 1.2%.
“Wall Street seems to have gotten its mojo back,” said Kyle Rodda, an analyst at Capital.com. “However, downside risks remain. Negative surprises in economic data are growing,” he added, noting that valuations appear stretched with forward P/E ratios near four-year highs and trade tensions still unresolved.
The US dollar weakened against major currencies, weighed down by soft economic data — particularly Friday’s lackluster payrolls report — and growing speculation of a more dovish Fed. Trump’s recent Fed nominations are also expected to support a looser monetary stance.
Attention is now turning to Trump’s nominee to fill a Fed Board vacancy, as well as possible candidates for Fed Chair, with Jerome Powell’s term ending in May.
The dollar index inched up to 98.245 after falling 0.6% the previous session. The euro held steady at US$1.1657 after a 0.7% surge on Wednesday. Sterling remained firm at US$1.3356.
The BOE is expected to cut rates for the fifth time in a year, though divisions among policymakers — with some potentially favoring a larger cut or no change at all — could complicate the path forward.
The dollar edged 0.1% higher to ¥147.53.
Gold rose 0.4% to around US$3,382 per ounce, supported by the weaker dollar.
Oil prices regained some ground after Wednesday’s sharp losses. Brent crude futures climbed 20 cents (0.3%) to US$67.09 per barrel, while US West Texas Intermediate rose 22 cents (0.3%) to US$64.57.
