Asia markets end mixed after wall street pullback

August 08, 2025 (MLN): Asia-Pacific markets traded mixed Friday, after two of the three key benchmarks on Wall Street gave back gains and closed lower.

Japanese equities led regional gains, with the Nikkei 225 benchmark climbing 2.22% to 41,968.68, as CNBC reported.

The broader Topix index advanced 1.65% to 3,037.11, crossing the 3,000 threshold for the first time and setting a new record high. The rally was driven by strong performances in technology, consumer cyclicals, and real estate sectors.

SoftBank Group shares surged as much as 13.10% after posting a return to profit in the first quarter, while Nitori Holdings gained 9.11% and Terumo Corp rose 8.70%.

Sony Group added 6%, building on Thursday’s 4.1% rise following its earnings report.

Honda also signaled a milder-than-expected impact from recent trade measures, in contrast to Toyota Motor, which cut its profit outlook.

The jump in Japanese shares followed positive earnings and news that the U.S. government would adjust overlapping tariffs on Japanese goods to prevent double duties.

Tokyo’s trade negotiator confirmed the agreement as the effective date for the recent U.S. trade duties arrived.

Elsewhere in the region, MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.4%, led by a 0.6% drop in Hong Kong’s Hang Seng Index as technology stocks retreated.

China’s blue-chip CSI 300 edged 0.1% lower, while Australian stocks fell 0.2%.

On Wall Street, U.S. stocks had retreated late in the previous session, erasing earlier gains and ending just below a one-week high.

However, U.S. stock futures pointed to further upside, with S&P 500 e-minis up 0.3% and Nasdaq futures rising 0.4%.

Market sentiment was also influenced by speculation around Federal Reserve leadership.

U.S. President Donald Trump announced his intention to nominate Council of Economic Advisers Chairman Stephen Miran to a vacant Fed seat.

Bloomberg reported that Fed Governor Christopher Waller is the leading candidate to succeed Jerome Powell when his term ends in May 2026.

Analysts noted this came “against the backdrop of an emerging titanic dovish pivot at the Federal Reserve,” according to IG market analyst Tony Sycamore in Sydney.

The yield on 10-year U.S. Treasury notes inched up to 4.2461% after weak demand at a 30-year bond auction, marking another lacklustre sale this week.

In currency markets, the dollar firmed 0.1% against the yen to 147.27.

The euro held steady at $1.1669, up 2.23% over the past month, while the dollar index added 0.2% to 98.124.

Japanese household spending rose 1.3% in the latest data release, slower than expected, providing mixed signals for the Bank of Japan as it assesses the timing of its next rate hike.

In commodities, Brent crude futures held at $66.45 per barrel, while U.S. crude futures were little changed at $63.81. Gold slipped 0.4% to $3,391.157 per ounce.

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