Asia markets end week higher as stimulus hopes grow

September 19, 2025 (MLN): Asian markets wrapped up the week on a positive note, buoyed by expectations of continued global monetary easing, with Japan’s Nikkei index scaling fresh highs on optimism the Bank of Japan will maintain its ultra-loose stance.

Japan’s benchmark Nikkei gained 0.7% on Friday, pushing to another all-time high and notching a 2% weekly advance after last week’s 4% surge.

The yen steadied at 148 per dollar. Data earlier showed core inflation eased to 2.7% in August, the slowest in nine months, though it remains above the BOJ’s 2% target.

According to DBS strategist Chang Wei Liang, any policy shift from the central bank could be delayed until after the ruling LDP’s leadership election on October 4.

He also highlighted that LDP candidate Sanae Takaichi’s comments later Friday may influence the yen, given her support for easy fiscal and monetary policies.

Elsewhere in the region, South Korea’s benchmark dipped 0.4% but still held near record territory, closing the week up 1.5% and extending a two-week rally to nearly 8%. MSCI’s index of Asia-Pacific shares outside Japan eased 0.3% on Friday but secured a 0.5% gain for the week, staying close to its highest in four years.

Trading volumes were elevated as the expiry of stock options, index options, and futures coincided, a phenomenon often referred to as “triple witching.” U.S. futures were flat, with both Nasdaq and S&P 500 contracts little changed.

In China, the blue-chip CSI300 edged up 0.2%, while Hong Kong’s Hang Seng slipped 0.3% ahead of a scheduled phone call between U.S. President Donald Trump and Chinese President Xi Jinping.

Investors are watching developments closely, with TikTok deal talks advancing, Huawei unveiling chip ambitions, and Beijing instructing local firms to avoid purchasing Nvidia’s AI chips.

On Wall Street, the S&P 500, Dow, and Nasdaq all finished at record highs overnight, boosted by upbeat jobless claims data and news that Nvidia plans to invest $5 billion in struggling chip rival Intel. The announcement sent Intel shares soaring 23%, while Nvidia rose 3.5%.

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