Asia markets mixed after Wall Street rally, Japan and South Korea rise, Hong Kong lag

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Asia stocks trade mixed on Monday as it reacts cautiously to the Wall Street rally. Japanese stocks rebounded sharply, even with the Bank of Japan's hawkish stance. Meanwhile, major chipmakers helped push South Korean markets higher.

Markets also monitored a lengthy call between President Trump and Chinese President Xi Jinping, where Trump cited progress on trade, fentanyl, and a potential TikTok agreement. On Sunday, Trump added that conservative media mogul Rupert Murdoch and his son Lachlan are likely to play a role in securing TikTok’s future in the US.

Focus this week is on a host of key economic indicators and Fed speakers, with Chair Jerome Powell set to speak on Tuesday.

Silver rose to around $43.5 per ounce on Monday, reaching a fresh 14-year high. Gold prices edged up to around $3,690 per ounce on Monday, hovering near record levels.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) rose 1.42% climbed 1.3% to above 45,600 and the broader Topix Index rose 0.8% to 3,173 on Monday, rebounding from the prior session’s losses. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] slipped past 148 per dollar on Monday, extending last week’s losses.

Looking ahead, investors await Japan’s latest PMI and Tokyo inflation data, as well as minutes from the BOJ’s July meeting, which could offer insight into the central bank’s near-term policy stance.

China (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) rose 0.07% to around 3,810, while the Shenzhen Component edged up 0.1% to 13,080 on Monday, as mainland stocks showed a mixed performance as investors assessed the PBOC’s key lending rate decision, 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] steadied around 7.12 per dollar on Monday, halting two consecutive sessions of losses.

China's central bank has kept its key interest rates unchanged for the fourth consecutive month [https://seekingalpha.com/news/4496828-pboc-holds-rates-steady-for-fourth-straight-month-despite-economic-slump], during the September fixing, in line with market expectations. The decision leaves the one-year loan prime rate at a record low of 3.0% and the five-year LPR, which is a benchmark for mortgages, at 3.5%.

China will “strictly” curb new steel production capacity, state broadcaster CCTV reported Monday, as the country moves to tackle overcapacity that has depressed prices and triggered protectionist responses abroad.

The White House has announced that US companies will take control of TikTok’s algorithm and Americans will hold six of seven board seats for its U.S. operations under a long-awaited deal with China.

Foreign direct investment in China fell 12.7% year-on-year to CNY 506.58 billion in the first eight months of 2025, amid global economic uncertainty.

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) fell 1.01% to 26,334 in early Monday trade after a muted close in the prior session.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) fell 0.26%

India’s Trade Minister Piyush Goyal will visit Washington today, September 22, to push forward a long-pending trade deal, following renewed talks last week. “The delegation plans to take forward the discussions with a view to achieving early conclusion of a mutually beneficial trade agreement,” an official statement said.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) rose 0.61% to 8,842 on Monday, rebounding from a notable decline last week as gold and uranium stocks led the gains. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] depreciated past $0.658 on Monday, marking its fourth consecutive session of losses.

Governor Michelle Bullock said Monday that the central bank would remain alert to shifts in the economic outlook, noting that recent data have broadly aligned with expectations.

Meanwhile, investor focus shifts to today’s PMI figures, followed by Wednesday’s Monthly CPI Indicator and RBA Payments System Board Annual Report 2025.

The benchmark KOSPI rose 0.80% to around 3,472 on Monday, reversing losses from the previous session as the index tracked Wall Street’s rally.

In the U.S. on Friday, all three major indexes ended higher [https://seekingalpha.com/news/4496609-stock-market-news-today-nasdaq-sp500-dow-jones] extending the record-setting gains from the prior session as investors digested upbeat corporate earnings, the Fed’s first rate cut of 2025, and signs of progress in US-China relations.

U.S. stock futures were little changed on Monday as investors awaited new catalysts to drive momentum: Dow -0.05%; S&P 500 -0.02%; Nasdaq flat.

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:

PBOC holds rates steady for fourth straight month, despite economic slump [https://seekingalpha.com/news/4496828-pboc-holds-rates-steady-for-fourth-straight-month-despite-economic-slump#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

China's central bank injects CNY 195B into banking system, maintains key interest rate of 1.4% [https://seekingalpha.com/news/4495905-chinas-central-bank-injects-cny-195b-into-banking-system-maintains-key-interest-rate-of-14#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Australia's jobless rate holds steady at 4.2%, employment unexpectedly eases in August [https://seekingalpha.com/news/4495903-australias-jobless-rate-holds-steady-at-42-employment-unexpectedly-eases-in-august#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

Japan's trade deficit narrows significantly in August, exports see smallest drop in four months, imports hit six-month low [https://seekingalpha.com/news/4495498-japans-trade-deficit-narrows-significantly-in-august-exports-see-smallest-drop-in-four-months-imports-hit-six-month-low#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]

China's industrial output and retail sales miss expectations in August; jobless rate ticks up [https://seekingalpha.com/news/4494707-chinas-industrial-output-and-retail-sales-miss-expectations-in-august-jobless-rate-ticks-up#source=url_first_level%3Amarket-news%7Csection%3Amarket-pulse%7Csection_asset%3Anews_title]