Asian markets opened with a mixed performance on Tuesday, 12 August 2025, as investor sentiment improved following a temporary tariff truce between the United States and China, while some regions saw muted trading ahead of key economic data. Japan and Australia led the gains, setting fresh records, while China and Hong Kong traded more cautiously.
Japan and Australia hit record highs
Japan’s Nikkei 225 surged 2.46% to a historic 42,849.67 points, driven by strong performances in technology and banking stocks. The broader Topix index also reached an all-time high of 3,067.96. Market optimism was boosted by the 90-day extension of the US-China tariff pause, easing trade concerns and lifting export-oriented shares. In Australia, the S&P/ASX 200 climbed to a record level, supported by investor expectations of an interest rate cut from the Reserve Bank of Australia later this year.
China and Hong Kong tread cautiously
Chinese equities were more restrained in early trade, with the CSI 300 index remaining flat as investors weighed weaker domestic demand against improved global trade sentiment. Hong Kong’s Hang Seng index slipped slightly, reflecting pressure on property and financial stocks despite broader Asian optimism. Analysts noted that uncertainty over China’s economic recovery continues to temper risk appetite in the region.
India sees a flat start before late rebound
Indian markets opened largely unchanged as losses in financial stocks offset gains elsewhere. The Nifty 50 began the session just below the 24,600 mark, while the BSE Sensex fell around 90 points. However, sentiment improved as the session progressed, with the Nifty 50 climbing above 24,650 and the Sensex gaining over 350 points. Gains were fuelled by strong performances in IT stocks and investor positioning ahead of key inflation data due later this week.
Outlook remains data-driven
While optimism from the tariff truce has given markets a short-term boost, traders remain cautious ahead of US and domestic inflation figures, which could influence central bank policy in several Asian economies. Analysts expect volatility to persist, particularly in export-heavy markets, as geopolitical and economic developments continue to unfold.
REFH – Newshub, 12 August 2025
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