U.S. stocks set new records as Asian markets react cautiously

On Monday, July 28, 2025, stock markets in Asia displayed a mixed reaction following the record rise of U.S. stocks the previous week. In the context of ongoing trade discussions between U.S. and Chinese officials, the Tokyo stock index, Nikkei 225, dropped by 1% amid growing uncertainty regarding the specifics of a trade truce between Japan and the U.S. The deal reportedly involves a $550 billion investment commitment from Japan, but official details are still being deliberated without formal agreements. In contrast, Hong Kong's Hang Seng index observed a slight increase of 0.4% on the same day, suggesting a cautious optimism among some investors. Similarly, Shanghai's Composite index witnessed a marginal decline of 0.2%. On the other hand, South Korea's Kospi index remained relatively stable, showing little change, while Australia's S&P/ASX 200 increased by 0.3%. Furthermore, markets in Thailand were closed for a holiday. U.S. markets had experienced significant growth recently, especially in sectors outside domestic borders where revenue saw a striking increase of nearly 50%. However, shares in major companies like Intel faced challenges, dropping 8.5% after reporting losses that contrasted with analysts’ expectations for profits. The Federal Reserve was also expected to meet on interest rates this week amid suggestions that President Donald Trump would advocate for rate cuts to alleviate government debt burdens. These factors contributed to a complex backdrop for stock performance, as geopolitical considerations and domestic economic policies continue to influence market decisions across the globe.