Asia markets mixed as Japan’s Nikkei hits all-time high after Trump-Takaichi deal

October 29, 2025 (MLN): Asian market traded mixed on Wednesday, with Japan’s Nikkei 225 surging more than 1% to a fresh record high above 51,000, buoyed by renewed optimism over U.S.-Japan trade relations and growing expectations for another Federal Reserve interest rate cut.

The Nikkei’s milestone came after U.S. President Donald Trump and Japanese Prime Minister Sanae Takaichi signed a new rare earths cooperation framework in Tokyo on Tuesday, a move aimed at strengthening supply chain security and reducing dependency on China, as reported by CNBC.

The agreement, Trump’s first major diplomatic engagement with Takaichi since she took office earlier this month, also included meetings with Emperor Naruhito at the Imperial Palace. Analysts said the visit reinforced investor confidence in closer economic ties between Washington and Tokyo.

Meanwhile, market sentiment across the region was also buoyed by expectations that the Federal Reserve will deliver another 25 basis point rate cut, following September’s reduction, bringing the federal funds rate to a range of 3.75%-4.00%.

“If Fed Chair Jerome Powell maintains a dovish tone, markets could price in further cuts, giving risk assets another leg higher,” veteran investor Louis Navellier said in a note to CNBC.

Elsewhere in Asia, the Topix index was little changed. South Korea’s Kospi edged up 0.17%, while the Kosdaq slipped 0.25%.

In Australia, the S&P/ASX 200 fell 0.16% after data showed consumer prices rose 3.2% in the third quarter the fastest pace in over a year and higher than economists’ 3% forecast.

The figure adds pressure on the Reserve Bank of Australia, which has been navigating a delicate balance between inflation and growth.

On the mainland, China’s CSI 300 rose 0.37%, while Hong Kong markets remained closed for public holidays.

Overnight on Wall Street, all three major U.S. indexes extended gains to fresh record territory. The S&P 500 climbed 0.23% to 6,890.89, after briefly topping 6,900 intraday for the first time. The Nasdaq Composite jumped 0.80% to 23,827.49, and the Dow Jones Industrial Average added 161.78 points, or 0.34%, to 47,706.37.

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