Asia markets diverge with Nikkei at record, fed signals more cuts

September 18, 2025 (MLN): Asia markets showed a divergent trend on Thursday, with Japan’s benchmark Nikkei 225 climbing 1.13% to a fresh all-time high, supported by strength in real estate and technology shares.

Resonac Holdings led the advance with a surge of more than 10%, followed by semiconductor maker Screen Holdings, up 4.3%, and beverage giant Kirin Holdings, which also gained 4.3%.

South Korea’s Kospi added 0.96%, while Australia’s S&P/ASX 200 slipped 0.51%. The sell-off in Sydney was dragged by Santos, which tumbled over 11% to A$6.78 after a consortium led by Abu Dhabi National Oil Company (ADNOC) scrapped its $18.7 billion takeover bid due to disagreements over valuation and deal terms.

Hong Kong’s Hang Seng Index eased 0.17% and China’s CSI 300 slipped 0.23%.

Chipmakers across the region saw notable gains after reports that China has barred Nvidia’s artificial intelligence chips.

SK Hynix jumped 5.5%, Samsung Electronics rose 2%, and Taiwan’s TSMC advanced 0.79%. In Japan, Advantest gained 3.54% and Tokyo Electron climbed 4.54%.

The Bank of Japan began its two-day policy meeting, with most analysts expecting no immediate change to interest rates. HSBC.

However, projected a 25-basis-point hike in October that would bring the policy rate to 0.75%, citing stronger-than-expected second-quarter GDP growth and reduced tariff risks following Japan’s recent trade agreement with the U.S.

The cautious mood in Asia followed the U.S. Federal Reserve’s decision to lower its benchmark rate on Wednesday.

Fed Chair Jerome Powell described the move as a “risk management cut,” emphasizing it was not primarily aimed at countering economic weakness.

The central bank also signaled two additional cuts this year, one in 2026, another in 2027, and no changes in 2028.

On Wall Street, U.S. equities closed mixed after a volatile session. The Dow Jones Industrial Average rose 260.42 points, or 0.6%, to 46,018.32, marking a record high despite paring earlier gains. The S&P 500 slipped 0.1% to 6,600.35, while the Nasdaq Composite fell 0.3% to 22,261.33.

“Alongside political scrutiny, the Fed faces a challenging backdrop of higher inflation and a weakening labor market conditions that are not favorable for financial assets,” noted Jack McIntyre, Portfolio Manager at Brandywine Global.

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