Asian stock markets opened broadly higher on Monday, buoyed by expectations of a US interest rate cut as early as September and a softer dollar. Investors also looked ahead to a heavy week of technology earnings, with semiconductor giant Nvidia seen as a potential bellwether for global risk appetite.
Strong start across the region
Major indices in Asia tracked falling US yields after signals of a more dovish Federal Reserve stance. Early trading saw gains in Japan, South Korea, Australia and China, where the large-cap CSI 300 continued its month-long rebound. India also opened firmer, with twelve of sixteen sectors rising in the first minutes of trade. The weaker dollar underpinned commodities and risk-sensitive assets, while lower long-term yields improved valuations for growth stocks.
China in focus – blue chips near monthly peak
Chinese equities extended their climb, with blue chips heading for a strong monthly performance. The rally was driven by relief over global rates and a more constructive view of domestic policy and earnings prospects after weaker data earlier in August. Hong Kong-listed technology firms received an additional boost from AI-related demand expectations, while investors monitored possible follow-up stimulus for property and credit sectors.
Korea and Japan buoyed by technology and reform themes
In Seoul, the KOSPI strengthened at the open, supported by momentum in finance and hardware, with political reform initiatives and international trade talks providing further sentiment support. In Tokyo, risk appetite remained intact as lower US yields traditionally benefit exporters and heavyweight technology and automation names. A broader theme in both markets is that uncertainty over trade and US tariffs is being balanced against solid corporate fundamentals in the semiconductor supply chain.
India records broad gains
Indian benchmarks opened higher with a risk-on tone, as expectations of lower US rates often increase capital inflows into emerging markets and ease dollar headwinds. Mid- and small-cap stocks joined the rally, suggesting that the buying was not confined to large caps. Investors await local data and corporate updates later in the week to gauge the sustainability of the move.
What markets are watching next
Attention now turns to US macroeconomic indicators – with upcoming inflation data likely to confirm or challenge the rate-cut narrative – and to this week’s technology results, with Nvidia in the spotlight. A strong set of numbers could extend AI-driven optimism; a disappointment, however, risks cutting short the rally in the region’s semiconductor sector. Broader risks remain: sluggish global manufacturing, geopolitical tensions, and signs that parts of Asia may already have outpaced fundamentals in the short term.
REFH – Newshub, 25 August 2025
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