Asia markets mixed as Fed cut hopes cool

August 15, 2025 (MLN): Asia-Pacific markets posted a mixed performance on Friday as investors digested Japan’s GDP figures alongside a batch of Chinese economic data, while U.S. inflation readings tempered expectations of aggressive rate cuts.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.3% after U.S. Bureau of Labor Statistics data showed the Producer Price Index (PPI) rising 0.9% month-on-month in July, far exceeding economists’ forecasts.

“What it did was to get rid of all the chat about a 50 basis point cut,” said Mike Houlahan, director at Electus Financial Ltd in Auckland.

U.S. stock futures were steady in early Asian trade after Wall Street ended Thursday slightly higher in a volatile session. Nasdaq futures slipped 0.1%, extending losses for a third straight day.

The yield on the U.S. 10-year Treasury fell 1 basis point to 4.2829%, while the two-year yield eased to 3.7304% from 3.739%.

The dollar index eased 0.1% to 98.143 after initial gains on the PPI release, with the greenback falling 0.3% to 147.64 yen.

Japan’s Nikkei 225 rebounded 0.4%, recovering from its largest one-day drop since April 11 on Thursday, as GDP data revealed a 1.0% annualised expansion in the April–June quarter, surpassing expectations.

Australian stocks rose 0.2%, while Hong Kong’s market lost 0.9% after declines in U.S.-listed ETFs tracking Chinese firms.

The CSI 300 index erased earlier gains and was flat following weaker-than-expected July figures for Chinese retail sales and industrial output.

Markets in India and South Korea were shut for public holidays.

In cryptocurrency trading, bitcoin edged up 0.7% after retreating sharply from a record $124,480.82 reached on Thursday, failing to break the $125,000 resistance.

Ether gained 1.7%. “Bitcoin’s failure to conquer the $125,000 resistance signals another consolidation phase,” noted Tony Sycamore, market analyst at IG in Sydney.

Commodity markets saw Brent crude steady at $66.94 per barrel ahead of a planned meeting in Alaska between U.S. President Donald Trump and Russian leader Vladimir Putin.

Spot gold inched up 0.1% to $3,339 per ounce as investors weighed the trajectory of inflation-adjusted interest rates, which tend to move inversely to bullion prices.

In early European trade, pan-regional futures rose 0.4%, Germany’s DAX futures added 0.3% to 24,489, and FTSE futures gained 0.5%.

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