Asian Market Wrap Nikkei Hits Record High Amid Mixed Sentiment and Economic Concerns, Closing Bell

# Asian Market Wrap: Nikkei Hits Record High Amid Mixed Sentiment and Economic Concerns

**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

## Market Commentary at Asian Session Close

At the close of the Asian session today, market sentiment exhibited mixed trends across various indices, influenced by regional developments and economic reports.

**Japan**: The Nikkei 225 reached a record high of 45,754.93, marking a 0.27% increase, driven by strong investor confidence amid ongoing economic recovery. This is the sixth consecutive session of gains, reflecting robust corporate earnings and positive economic indicators.

**China**: The Shanghai Composite ended slightly lower at 3,853.30, down 0.01%. A report from S&P Global Ratings warned that Chinese banks are nearing a “Japanification moment,” highlighting concerns over profitability and vulnerability to credit shocks. Additionally, China imposed trade sanctions on six U.S. firms, escalating tensions ahead of a crucial meeting between leaders of both nations. The Hang Seng Index also fell 0.13% to 26,484.68, impacted by these geopolitical tensions and a cautious outlook on the tech sector, despite Alibaba’s strong performance, which has seen a 50% rise this month.

**South Korea**: The KOSPI closed at 3,471.11, down 0.03%, as the won weakened against the dollar, hitting 1,403.8 won per dollar, which raised concerns about foreign investment sentiment. This depreciation could dampen the recent rally in the stock market, particularly affecting semiconductor shares, which have been a key driver of growth. Additionally, credit card delinquencies reached an 11-year high, further complicating the economic landscape.

**India**: The NIFTY 50 declined by 0.66% to 24,890.85, reflecting investor caution amid global economic uncertainties and potential inflationary pressures.

**Singapore**: The Straits Times Index fell 0.39% to 4,273.86, as HSBC announced the sale of its retail banking unit in Sri Lanka, part of its broader strategy to simplify operations. Meanwhile, Crédit Agricole relocated its offices in Singapore, aiming to enhance operational synergies.

**Thailand**: The SET Index rose 0.77% to 1,288.26, buoyed by local investor sentiment following government efforts to address infrastructure challenges, such as the recent sinkhole incident in Bangkok.

**Commodities and Currencies**: Late-session volatility was noted in the currency markets, particularly with the Korean won’s depreciation impacting investor sentiment. Oil prices remained stable amid fluctuating demand forecasts.

## FX, Commodities, and Crypto Performance

At the close of the Asian session, the FX market exhibited mixed sentiment. The USD/JPY remained stable, while the USD/CNY declined by 0.12%, indicating slight weakness in the yuan. The AUD/USD gained 0.14%, reflecting positive sentiment towards the Australian dollar. In commodities, gold rose by 0.57%, suggesting safe-haven demand, while crude oil fell by 0.68%, likely due to concerns over supply and demand dynamics. In the cryptocurrency space, Bitcoin and Ethereum experienced notable declines of 1.47% and 3.30%, respectively, reflecting bearish sentiment as investors reacted to market volatility.

**FX Pairs**

**Commodities**

**Cryptocurrencies**

## 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.

During the Asian session on September 24, 2025, significant economic events impacted the Japanese yen (JPY) and overall market sentiment. At 19:30 ET, the Tokyo Core CPI for September was released, with expectations set at 2.8%. This inflation data is crucial for assessing the Bank of Japan’s (BoJ) monetary policy stance. The market closely monitored this figure, as any deviation from the forecast could influence the BoJ’s future actions regarding interest rates.

Additionally, at 19:50 ET, the minutes from the recent Monetary Policy Meeting were published. These minutes provide insights into the BoJ’s discussions and future policy outlook, which can significantly sway market expectations and currency valuations.

As the session closed, the JPY experienced volatility, reflecting traders’ reactions to the CPI data and the tone of the monetary policy minutes. The overall sentiment leaned towards caution, with the JPY showing slight weakness against major currencies, influenced by ongoing inflation concerns and the BoJ’s potential response. Market participants remain vigilant for further guidance on monetary policy direction, which could impact the yen in the coming sessions.

## What to Watch Next

– Follow-through from today’s regional macro data and policy announcements.
– Company earnings or updates impacting large-cap indices.
– Overnight cues from US and European market sessions.
– Early indications from China and Hong Kong markets at tomorrow’s open.
– Currency trends in USD/JPY and USD/CNY influencing equities.
– Geopolitical developments affecting market sentiment.