Asia market flat as Alibaba drops, SoftBank jumps

September 11, 2025 (MLN): Asia markets were mixed on Thursday, with major benchmarks in Australia and Hong Kong edging lower, leaving MSCI’s Asia index flat after five straight days of gains.

Mainland Chinese equities swung between gains and losses, while Japan’s Nikkei 225 and South Korea’s Kospi index advanced.

Alibaba Group Holding Ltd slipped 1.3%, becoming the biggest drag on the regional gauge. The company is moving ahead with a US$3.17 billion (RM13.4bn) zero-coupon convertible notes offering, which would be the largest of the year, according to terms of the deal reviewed by Bloomberg News.

In Japan, SoftBank Group shares jumped about 8% to a record high, following gains in Arm Holdings plc during Wednesday’s US trading session. Chipmakers also contributed to the regional advance, with Taiwan Semiconductor Manufacturing Co (TSMC) and South Korea’s SK Hynix Inc posting gains.

Government bonds in Australia and New Zealand climbed, while US Treasuries held steady after a rally the previous day. The dollar index was little changed and the yen traded steadily against the greenback.

Fresh US data showed producer prices unexpectedly falling in August for the first time in four months, easing concerns that sticky inflation could complicate efforts to prevent a downturn in the jobs market. The report came ahead of key consumer price figures due later Thursday.

“Investors are now contemplating the extent to which August’s payrolls, the benchmark revisions and the producer price index should drive a conversation about a 50-basis-point cut next week,” said Ian Lyngen and Vail Hartman of BMO Capital Markets. “We are still in the 25-basis-point cut camp. For a half-point to be a real possibility, tomorrow’s (Thursday) core consumer price index move will need to underwhelm.”

Excluding food and energy, US producer prices slipped 0.1% in August from the prior month, compared with forecasts for a 0.3% increase.

July’s figures were also revised lower. The data may signal that companies are cutting prices to defend market share, according to Neil Dutta at Renaissance Macro Research.

“The Fed should cut 50 basis points next week but I don’t think they will,” Dutta said. “The doves on the Federal Open Market Committee have a very strong case to make. The hawks will argue that the unemployment rate is still low, financial conditions are loose, and that there is still upward inflation pressure in front of us due to tariffs.”

In the region, Australia is set to release inflation expectations data, while Malaysia will publish industrial production figures. Later in the day, the European Central Bank is widely expected to leave interest rates unchanged.

On the geopolitical front, US President Donald Trump and Indian Prime Minister Narendra Modi agreed to restart trade talks, suggesting a possible easing of tensions following weeks of disputes over tariffs and Russian oil purchases.

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