# Asian Markets Close Higher as China Accelerates AI Initiatives and Indices Show Strong Gains
**Note**: This analysis is generated at the close of the Asian session, focusing on end-of-day performance in Asian markets. Event times are in US Eastern Time.
The Asian session concluded with mixed performances across major indices, reflecting varied market sentiment. Shanghai Composite led gains, while TAIEX lagged, driven by regional economic data and global cues.
## Asian Indices Performance at Close
| Index | Price | Daily Change (%) |
|---|---|---|
| Shanghai Composite | 3812.51 | 1.24 |
| Nikkei 225 | 43018.75 | 1.03 |
| Hang Seng Index | 25417.98 | 1.43 |
| Shenzhen Component | 12590.56 | 3.89 |
| KOSPI | 3205.12 | 0.13 |
| S&P/ASX 200 | 8871.20 | 0.51 |
| NIFTY 50 | 24741.00 | 0.03 |
| Straits Times Index | 4307.08 | 0.24 |
| S&P/NZX 50 | 13223.53 | 0.69 |
| Thailand SET Index | 1264.80 | 0.98 |
| TAIEX | 24494.58 | 1.30 |
## Market Commentary at Asian Session Close
**Asian Market Summary – Close of Session**
Asian markets closed predominantly higher today, buoyed by positive sentiment following U.S. President Trump’s announcement of lower tariffs on Japanese auto imports. The Nikkei 225 rose by 1.03%, closing at 43,018.75, while the Hang Seng Index gained 1.43% to finish at 25,417.98. China’s Shanghai Composite surged by 1.24%, ending the session at 3,812.51, driven by local government initiatives to bolster the artificial intelligence sector, as seen with Wenzhou’s establishment of a dedicated AI bureau.
In Hong Kong, Sun Hung Kai Properties reported a slight earnings increase, though analysts had mixed reactions, with Morningstar cutting its price target. This contributed to the late-session volatility, but the overall market maintained upward momentum. Meanwhile, Fosun International’s push into blockchain technology for stock performance-linked tokens marked a significant innovation in the financial sector, likely enhancing investor interest in tech-driven assets.
In South Korea, the KOSPI edged up by 0.13% to 3,205.12, supported by statements from KRX Chairman Jeong Eun-bo, who emphasized a shift towards innovative service sectors to drive the index towards the 5,000-point milestone. However, concerns over deteriorating profitability in commercial banks, particularly due to the government’s industrial restructuring plans, raised caution among investors.
Singapore’s Straits Times Index rose by 0.24%, closing at 4,307.08, as analysts highlighted the resilience of Singapore bonds amid a global debt rout, positioning them as safe-haven assets. Citi’s landmark deal with BlackRock to manage an $80 billion portfolio also reinforced confidence in the financial services sector.
The Australian S&P/ASX 200 increased by 0.51%, closing at 8,871.20, while the NIFTY 50 in India saw a marginal rise of 0.03%, finishing at 24,741.00. The Thai SET Index climbed by 0.98% to 1,264.80, reflecting regional optimism.
In the cryptocurrency market, stablecoins were noted as potential disruptors to traditional credit card rewards, indicating a growing intersection between digital currencies and conventional financial products.
**Currency and Commodities Overview:**
The Asian session saw the U.S. dollar maintain strength against major currencies, while commodities remained stable, with oil prices reflecting cautious trading ahead of OPEC’s upcoming
## FX, Commodities, and Crypto Performance
At the close of the Asian session, the FX market exhibited mixed performance. The USD/JPY and USD/CNY pairs declined slightly by 0.12% and 0.05%, respectively, reflecting a cautious sentiment. Conversely, the AUD/USD pair gained 0.38%, indicating strength in the Australian dollar, while USD/NZD fell 0.43%. In commodities, gold remained stable with a marginal increase of 0.01%, while crude oil prices dropped by 0.60%, suggesting bearish sentiment. In the cryptocurrency market, Bitcoin rose by 1.43% and Ethereum surged 2.79%, reflecting positive sentiment and increased investor interest in digital assets.
**FX Pairs**
| Currency Pair | Price | Daily Change (%) |
|---|---|---|
| USD/JPY | 148.23 | -0.12 |
| USD/CNY | 7.14 | -0.05 |
| USD/SGD | 1.29 | -0.18 |
| AUD/USD | 0.65 | 0.38 |
| USD/NZD | 1.70 | -0.43 |
| USD/INR | 88.25 | 0.11 |
**Commodities**
| Commodity | Price | Daily Change (%) |
|---|---|---|
| Gold December | 3607.30 | 0.01 |
| Crude Oil December | 63.11 | -0.60 |
**Cryptocurrencies**
| Crypto | Price | Daily Change (%) |
|---|---|---|
| Bitcoin | 112313.14 | 1.43 |
| Ethereum | 4419.39 | 2.79 |
## Economic Events During Asian Session
The following table lists medium to high-importance economic events from Asian countries that occurred during the Asian session (yesterday 17:00 to today 03:30 ET), impacting market close.
| Date | Time | Cur | Imp | Event | Actual | Forecast |
|---|---|---|---|---|---|---|
| 2025-09-04 | 19:30 | 🇯🇵 | Medium | Household Spending (MoM) (Jul) | 1.7% | 1.3% |
| 2025-09-04 | 19:30 | 🇯🇵 | Medium | Household Spending (YoY) (Jul) | 1.4% | 2.2% |
During the Asian trading session on September 4, 2025, significant economic data from Japan impacted market sentiment and currency movements. The Household Spending figures for July were released, showing a month-over-month increase of 1.7%, surpassing the forecast of 1.3%. However, the year-over-year growth was recorded at 1.4%, falling short of the anticipated 2.2%.
The positive month-over-month figure indicated stronger consumer spending, which is a critical driver of economic growth, leading to a temporary appreciation of the Japanese Yen (JPY) against major currencies. However, the weaker year-over-year result raised concerns about the sustainability of this growth, potentially limiting the JPY’s gains.
As a result, the JPY experienced volatility during the session, reflecting mixed investor sentiment. The overall impact of these data releases contributed to a cautious trading atmosphere in the currency markets, as traders weighed the implications of consumer behavior on Japan’s economic outlook. The session closed with the JPY showing modest gains against the US Dollar, though uncertainty persisted due to the disappointing annual growth figure.
