Asian equities finished Thursday’s session largely flat as enthusiasm from recent AI-driven gains cooled and expectations for aggressive US interest rate cuts diminished.
Investors weighed concerns over a slowing US labour market and persistent inflation while awaiting fresh data, including jobless claims and the Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) index.
Hong Kong pauses after tech-led surge
Hong Kong shares slipped after early gains, with the Hang Seng Index closing down 0.1% at 26,484.68 following a nearly 500-point rally on Wednesday.
The Hang Seng Tech Index rose 0.9%, but profit-taking weighed on heavyweight names.
Alibaba lost 1.2% after hitting a four-year high in morning trade, Haier Smart Home declined 4.8%, Hang Seng Bank fell 3.1%, and Bank of China shed 2.5%.
Losses were partly offset by strength in Zijin Mining Group, which jumped 5.1% on higher copper and gold prices.
Xiaomi rose 4.5% and JD.com advanced 3.5%.
China’s CSI 300 Index gained 0.6% while the Shanghai Composite was little changed.
Japan gains ahead of inflation report
Japanese markets edged higher after minutes from the Bank of Japan’s July meeting suggested policymakers remain open to future rate hikes if conditions permit.
The Nikkei average climbed 0.27% to 45,754.93, while the Topix rose 0.47% to 3,185.35.
Bond yields eased, with the 40-year yield dropping to a one-month low following strong demand at auction.
Traders now await Tokyo’s inflation reading on Friday for further policy signals.
Other regional markets
South Korea’s Kospi ended marginally lower at 3,471.11 amid ongoing tariff concerns.
Prime Minister Kim Min-seok said in an interview that South Korean investment projects in the US remain stalled until visa-related issues are resolved.
In Australia, equities finished modestly higher after a volatile session.
Copper miners advanced on surging metal prices, offsetting weakness in banks and gold producers.
Indian equities extended their losing streak to a fifth straight session on September 25, with both benchmark indices ending in the red.
The Sensex fell 555.95 points, or 0.68%, to close at 81,159.68, while the Nifty slipped 166.05 points, or 0.66%, to settle at 24,890.85, dropping below the 24,900 mark.
Tata Motors, Trent, Shriram Finance, TCS, and Power Grid were among the major laggards on the Nifty.
US economic data later today
Federal Reserve Chair Jerome Powell cautioned earlier this week that there is “no risk-free path” in setting policy, noting that easing too quickly could reignite inflation, while waiting too long risks damaging labour market gains.
His remarks were echoed by other Fed officials in separate appearances, all stressing that future rate moves will hinge on incoming economic data.
The comments weighed on sentiment across financial markets, with investors turning cautious ahead of key releases.
Weekly jobless claims figures and the final reading of second-quarter GDP are due Thursday and are expected to provide fresh clues on the Fed’s next steps.
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