Asia markets mixed, Nikkei 225 climbs past 44,000 on trade and stimulus hopes

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Asia stock traded mixed on Tuesday following an upbeat session on Wall Street overnight amid hopes of Fed interest rate cuts this month following disappointing jobs data and ahead of the release of inflation figures. Japan's Nikkei 225 index stood out, climbing past the 44,000 mark for the first time ever in early morning trading. The milestone was driven by investor optimism about potential increases in government stimulus spending and positive developments in trade.

Silver hovered around $41.2 per ounce on Tuesday, near its highest level since 2011. Gold hit a fresh all-time high at around $3,650 per ounce on Tuesday.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) fell 0.17% to 43,538 while the broader Topix Index advanced 0.4% to 3,150 on Tuesday. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] strengthened to around 147.3 per dollar on Tuesday, extending gains from the prior session.

U.S. tariffs on Japanese goods, including cars and auto parts, are set to be lowered by September 16, according to Japan’s tariff negotiator Ryosei Akazawa in an X post on Tuesday. Akazawa cited a U.S. Federal Register notice dated September 9, which formalized President Donald Trump’s executive order on the bilateral trade deal.

On the domestic front, markets continued to weigh the political fallout from Prime Minister Shigeru Ishiba’s resignation after mounting rifts within the ruling party and pressure from his election defeat late last year.

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) fell 0.77% to around 3,830 while the Shenzhen Component slipped 0.3% to 12,630 on Tuesday, with mainland equities delivering mixed performances as lingering regulatory uncertainty capped sentiment, and the offshore yuan [https://seekingalpha.com/symbol/USD:CNY#source=url_first_level%3Amarket-news%7Csection%3Aglobal%7Csection_asset%3Afull_story%7Cbutton%3Abody_link] held its recent advance around 7.12 per dollar on Tuesday, after three straight sessions of gains, supported by weakness in the US dollar.

Meanwhile, China is pressing ASEAN to finalize an upgraded free trade pact by year-end to boost exports and counter US tariffs, highlighting its push for greater market access and multilateral cooperation.

Looking ahead, market attention turns to key data this week, including August consumer prices, which are expected to reignite deflationary concerns.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) rose 0.62% to 25,988 in early deals on Tuesday, rising for the third straight session to their highest level since October 2021 as all sectors advanced.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) rose 0.19% to 81,072 in early trade on Tuesday, gaining for the second straight session and hitting their highest level in two weeks.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) fell 0.71% to 8,802 on Tuesday, extending its decline from the previous session as investor sentiment remained cautious amid disappointing economic data. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] strengthened past $0.66 on Tuesday, marking its third consecutive session of gains and reaching its highest level in over a month.

On the domestic economic front, the Westpac-Melbourne Institute Consumer Sentiment Index fell 3.1% to 95.4 in September, reversing a 5.7% jump in August that had lifted the index to its highest level since early 2022.

Meanwhile, the NAB Business Confidence Index dropped to a three-month low of 4 in August 2025, from an upwardly revised 8 in the previous month — the highest reading since August 2022.

In the U.S. on Monday, all three major indexes ended higher [https://seekingalpha.com/news/4493051-sp500-nasdaq-composite-dow-jones-stock-market-news] as investors positioned ahead of a data-heavy week that includes two key inflation reports likely to influence Federal Reserve policy expectations.

Focus also shifted to two key inflation readings this week that could guide the next policy move, with the August producer price index due Wednesday and the consumer price index Thursday.

U.S. stock futures were little changed on Tuesday after equities advanced in the prior session: Dow +0.06%; S&P 500 +0.10%; Nasdaq +0.10%.

CURRENCIES: (JPY:USD [https://seekingalpha.com/symbol/JPY:USD]), (CNY:USD [https://seekingalpha.com/symbol/CNY:USD]), (AUD:USD [https://seekingalpha.com/symbol/AUD:USD]), (INR:USD [https://seekingalpha.com/symbol/INR:USD]), (HKD:USD [https://seekingalpha.com/symbol/HKD:USD]), (NZD:USD [https://seekingalpha.com/symbol/NZD:USD]).

MORE ON ASIA:

China posts higher-than-expected trade surplus despite weakening exports [https://seekingalpha.com/news/4492921-china-posts-higher-than-expected-trade-surplus-despite-weakening-exports#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Japan's upward GDP revision contrasts with political uncertainty after Ishiba's resignation [https://seekingalpha.com/news/4492925-japans-upward-gdp-revision-contrasts-with-political-uncertainty-after-ishibas-resignation#source=url_first_level%3Amarket-news%7Csection%3Amarket-news%7Csection_asset%3Anews_title]

Japan Prime Minister Ishiba to step down [https://seekingalpha.com/news/4492882-japan-prime-minister-ishiba-to-step-down]

J [https://seekingalpha.com/news/4492571-japans-real-wages-turn-positive-for-first-time-in-eight-months-to-05-in-july-trumps-tariff-cut-boosts-japan#source=url_first_level%3Amarket-news%7Csection%3Amarket-news%7Csection_asset%3Anews_title]apan's real wages turn positive for first time in eight months to 0.5% in July, nominal wage growth hits 7-month high [https://seekingalpha.com/news/4492571-japans-real-wages-turn-positive-for-first-time-in-eight-months-to-05-in-july-trumps-tariff-cut-boosts-japan#source=url_first_level%3Amarket-news%7Csection%3Amarket-news%7Csection_asset%3Anews_title]

Australia’s trade surplus widens to A$7.31B in July; exports hit 21-month high [https://seekingalpha.com/news/4492102-australias-trade-surplus-widens-to-a731b-in-july-exports-hit-21-month-high#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]