Asian stocks ended mostly lower on Thursday, with the Federal Reserve's interest-rate decision, tech earnings, U.S. President Donald Trump's tariff threats and Chinese data in focus.
Japanese markets outperformed as the Bank of Japan held interest rates steady and offered a cautiously optimistic view on the economic outlook.
Gold prices surged above $3,300 per ounce despite the dollar extending its bullish run. Oil prices steadied after three days of gains.
China's Shanghai Composite Index fell 1.2 percent to 3,573.21 as data showed Chinese factory activity unexpectedly deteriorated in July to a three-month low.
Hong Kong's Hang Seng Index tumbled 1.6 percent to 24,773.33 after Chinese leaders signaled they would refrain from rolling out more major stimulus for now.
Japanese markets rallied, the yen strengthened, and shorter-dated bonds pared declines after the Bank of Japan revised up its inflation forecasts. Investors also cheered encouraging retail sales and industrial output data for June.
The Nikkei 225 Index jumped 1.0 percent to 41,069.82, while the broader Topix Index settled 0.8 percent higher at 2,943.07. Shares of companies that benefit from falling copper prices climbed, with Fujikura and Furukawa Electric surging 6-7 percent.
Seoul stocks ended slightly lower to snap a six-day winning streak as investors assessed Samsung's second-quarter earnings results and the economic impact of the long-awaited tariff deal between Seoul and Washington.
The Kospi dipped 0.3 percent to 3,245.44 as Trump announced a blanket tariff of 15 percent on South Korean imports under a new deal.
The agreement includes a South Korean investment of $350 billion in the U.S., but other non-tariff barriers, as well as security and foreign exchange issues, were left out.
Market bellwether Samsung Electronics fell 1.7 percent after it second quarter net profit missed forecasts. Chip giant SK Hynix surged 3.8 percent, while battery maker LG Energy Solution gave up 2.7 percent.
Australian markets ended slightly lower ahead of Trump's August 1 tariff deadline.
The benchmark S&P/ASX 200 Index slipped 0.2 percent to 8,742.80 as stronger-than-expected retail sales data dampened expectations of a rate cut from the Reserve Bank of Australia. The broader All Ordinaries Index ended 0.2 percent lower at 8,999.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 Index fell 0.3 percent to 12,823.74.
Overnight, U.S. stocks fluctuated before ending narrowly mixed as the Federal Reserve left interest rates unchanged in a divided vote and Chair Jerome Powell signaled caution on the likelihood of a rate cut in September.
"Higher tariffs have begun to show through more clearly to prices of some goods, but their overall effects on economic activity and inflation remain to be seen," Powell said.
The dollar surged to the highest level since May as data showed U.S. private payrolls increased more than expected July and the economy grew 3 percent in the second quarter of 2025, rebounding from a 0.5 percent contraction in the first quarter.
The tech-heavy Nasdaq Composite rose 0.2 percent, while the S&P 500 slipped 0.1 percent and the Dow shed 0.4 percent.
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Business News
December 26, 2025 08:42 ET Third quarter economic growth data from some major economies including the U.S. were the main news in this holiday shortened week. GDP growth and industrial production data from the U.S. helped to boost morale, while the consumer confidence survey results were less upbeat. In Europe, the quarterly economic growth data from the U.K. drew attention, while the minutes of the Australian central bank’s latest policy session was in focus in Asia.