Thursday 16th October 2025: Asian Markets Advance on Fed Rate Cut Hopes Amid U.S.-China Trade Tensions

Global Markets:

•  Asian Stock Markets : Nikkei up 1.08%, Shanghai Composite up 0.10%, Hang Seng down -0.52% ASX up 0.81%
• Commodities : Gold at $4,248.79 (1.12%), Silver at $52.375 (1.94%), Brent Oil at $62.48 (0.92%), WTI Oil at $58.87 (1.03%)
• Rates : US 10-year yield at 4.027, UK 10-year yield at 4.5480, Germany 10-year yield at 2.5580

News & Data:

• (CAD) Manufacturing Sales m/m  -1.0%  to -1.5% expected
• (CAD) Wholesale Sales m/m  -1.2%  to -1.3% expected

Markets Update:

Asian markets traded higher Thursday, following mixed cues from Wall Street overnight and comments from U.S. Fed Chair Jerome Powell that hinted at another potential rate cut as traders weighed the impact of escalating U.S.-China trade friction. Markets had closed mostly higher Wednesday.

Powell warned the slow pass-through of tariffs risks becoming persistent inflation, reinforcing expectations for further easing. With the release of some data postponed amid the U.S. government shutdown, markets are watching remarks from several Fed officials for guidance.

Australia led gains, with the S&P/ASX 200 rising to record territory above 9,050. The index was up about 1.05% at 9,085.20 after touching 9,109.70 earlier, while the All Ordinaries climbed near 9,389.80. Gold miners, energy and financials drove gains, offsetting weakness in technology. Major miners BHP and Rio Tinto were slightly higher; Mineral Resources and Fortescue slipped. Oil and energy stocks were broadly firmer. AMP jumped after a quarterly rise in assets under management.

Japan’s Nikkei 225 extended gains, trading above 48,000 as financials, automakers and tech stocks advanced. SoftBank and select exporters rallied, though some names retreated. Japan reported a monthly fall in core machinery orders, weighing on industrial names.

Elsewhere, South Korea and Taiwan outperformed, and U.S. equities showed volatile swings with the S&P 500 and Nasdaq finishing higher ahead of mixed European trade.

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