Asian stock markets traded mixed on Tuesday, with most major indices rising on expectations that the U.S. Federal Reserve will cut interest rates next week. Japan’s Nikkei 225 briefly surged 1.2% to a record 44,185.7 points before easing to 43,732.6, still up 0.2% by 02:50 GMT. The broader TOPIX also edged higher, extending a four-day winning streak.
Investor sentiment in Japan strengthened after Prime Minister Shigeru Ishiba resigned following heavy election losses, fueling speculation that his successor may adopt more expansionary fiscal and monetary policies. Markets also expect the Bank of Japan to delay further tightening. Positive momentum was supported by revised GDP data showing 2.2% annualized growth in Q2, up from the earlier 1.0% estimate, driven by private consumption and inventory gains. On a quarterly basis, GDP expanded 0.5%, above the 0.3% forecast. Additionally, optimism grew after a U.S.-Japan trade deal promised reduced tariffs on auto exports by mid-September.
Elsewhere, Hong Kong’s Hang Seng index rose 1.5%, while the Hang Seng TECH sub-index gained 1.7%, tracking Wall Street’s Nasdaq record close. South Korea’s KOSPI advanced nearly 1%, with chipmakers Samsung Electronics up 1% and SK Hynix jumping 2.8%. China’s Shanghai Composite was flat, and the CSI 300 dipped 0.1%.
Australia’s S&P/ASX 200 slipped 0.6%, pressured by financials after ANZ Group announced 3,500 job cuts and a A$560 million restructuring charge. Singapore’s Straits Times Index fell 0.3%, while India’s Nifty 50 futures traded largely unchanged.
Overall, expectations of U.S. rate cuts, upbeat Japanese economic data, and political shifts drove market sentiment, though regional performances varied.


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