Asian markets react as U.S. stocks set new records
- U.S. stocks reached new record highs, boosting futures and oil prices.
- Mixed results in Asian markets, with Japan's Nikkei 225 index dropping and Hong Kong's Hang Seng index gaining.
- Optimism over trade agreements and upcoming Federal Reserve meeting influence market sentiments.
On July 28, 2025, stock markets in Asia displayed mixed results following a successful week for U.S. stocks, which reached new record highs. U.S. futures, along with oil prices, showed an increase ahead of trade negotiations scheduled between U.S. and Chinese officials in Stockholm. In Japan, the Nikkei 225 index saw a decline of 1% as concerns regarding the specifics of the recent trade truce with the U.S. President Donald Trump emerged, particularly the $550 billion investment commitment from Japan, details of which are still under negotiation and not formally documented. Meanwhile, the Hang Seng index in Hong Kong gained 0.4%, while the Shanghai Composite index dipped by 0.2%. The Taiwanese Taiex experienced a modest rise of 0.3%. A notable development involved CK Hutchison, a Hong Kong conglomerate, as they planned to sell ports at the Panama Canal, looking to attract a Chinese investor for their consortium of buyers. This move, while aiming to please Beijing, could also complicate matters by introducing increased scrutiny from the U.S. government. In South Korea, the Kospi remained largely unchanged, standing at 3,195.49 points, and Australian stocks showed modest growth with the S&P/ASX 200 up by 0.3% to 8,688.40. However, markets in Thailand were closed for a public holiday. Among the U.S. tech companies, Intel's stock faced an 8.5% decline following disappointing quarterly results, against analysts' forecasts for profits, which indicated that the company was struggling to compete with rivals like Nvidia and Advanced Micro Devices in the high-demand artificial intelligence chip market. The trading environment on Wall Street has been positive recently, fueled by optimism over potential trade agreements that might lessen the burden of proposed tariffs by President Donald Trump. Concerns about a possible recession and rising inflation due to these tariffs linger. Additionally, the Federal Reserve is expected to convene soon to discuss interest rate policies, with many anticipating a rate cut in September. President Trump continued to advocate for lower interest rates as a means to alleviate the government's debt service costs, reflecting his administration's ongoing economic strategies.