Asian shares mix as Wall Street rally slows; BOJ minutes hint rate moves
Markets in Asia were broadly higher after U.S. stocks paused, with Bank of Japan minutes signaling potential policy tightening amid improving activity and inflation.
Asian shares were mixed on Thursday after Wall Street’s rally cooled, with U.S. futures edging higher and oil prices slipping. Japan’s Nikkei 225 recovered from earlier losses, advancing 0.3% to 45,768.68 as investors weighed the outlook for policy and growth. Australia’s S&P/ASX 200 rose more than 0.1% to 8,775.00, while Hong Kong’s Hang Seng inched up 0.1% to 26,542.37 and the Shanghai Composite gained about 0.2% to 3,860.22 on the strength of technology shares.
Minutes from the Bank of Japan’s July meeting released Thursday indicated policy officials were inclined to raise interest rates if economic activity and prices improve. The signals come as investors monitor Japan’s inflation trajectory and overall growth while weighing the potential timing and pace of any policy shift.
Across the region, South Korea’s Kospi slipped less than 0.1% to 3,471.66, while India’s Sensex fell 0.5% and Taiwan’s Taiex closed 0.4% lower, underscoring a broad but uneven regional tone as investors digest domestic data and external developments. In contrast, U.S. stock futures gained modest ground ahead of the session, and oil prices retreated, with benchmark crude prices easing on the day.
On Wednesday, U.S. stock indexes drifted lower as concerns about the level of share prices resurfaced. The S&P 500 slipped 0.3% to 6,637.97 for a second straight session of modest losses after a blistering rally, the Dow Jones Industrial Average declined 171 points to 46,121.28, and the Nasdaq Composite edged down 0.3% to 22,497.86. Still, all three indices remained near their record highs reached earlier in the week, underscoring a market that has been buoyed by optimism around tariffs and the Federal Reserve’s rate trajectory.
Investors have been balancing hopes that tariff policy will not derail global trade with expectations that the Fed could deliver several rate cuts to support the U.S. economy. The rally has nonetheless pushed some prices higher than historical norms, raising questions about sustainability if central banks falter on easing.
The corporate backdrop offered mixed signals. Micron Technology fell 2.8% after reporting quarterly results that beat expectations, but investors weighed the outlook against its already steep year-to-date gains. Freeport‑McMoRan dropped 17% after the miner cut its copper and gold sales forecasts for the third quarter. Lithium Americas surged 95.8% on reports the U.S. government is considering taking an ownership stake in the Canadian company’s Nevada project with General Motors.
In the housing market, U.S. new-home sales unexpectedly accelerated in August, helping to lift homebuilder shares. Elsewhere, energy markets moved differently: U.S. crude slipped 26 cents to $64.73 per barrel, while Brent fell 24 cents to $68.22. The U.S. dollar weakened to 148.73 Japanese yen from 148.78, and the euro rose to $1.1748 from $1.1744.
The session’s broader takeaway is one of cautious optimism mixed with volatility around policy expectations and corporate results, as investors navigate a shifting global backdrop ahead of more earnings and economic data in the weeks ahead.