Federal Reserve Outlook Galvanizes Asian Stock Markets

06:34 AM EDT, 08/25/2025 (MT Newswires) -- Asian stock markets rallied on Monday, following dovish commentary late Friday by US Federal Reserve Chair Jerome Powell and triggering hopes that Asia Pacific central banks could also ease.

Hong Kong, Shanghai, and Tokyo finished in the green, as did other regional exchanges.

In Japan, the Nikkei 225 opened higher on Wall Street cues and held ground, finishing up 0.4% as traders looked for less pressure on the Bank of Japan to tighten monetary policy.

The benchmark Nikkei 225 rose 174.53 to 42,807.82, as gaining issues outnumbered losers 118 to 107.

Leading the upside was plumbing fixtures maker Toto, up 8.4%, while medical device maker Terumo declined 4%.

In economic news, Japan's revised leading economic index for June logged at 105.6 in June, down slightly from the preliminary estimate of 106.1, but still the highest reading since March, reported the Cabinet Office on Monday.

In Hong Kong, the Hang Seng Index finished up 1.9% as traders weighed options for the Hong Kong Monetary Authority and the People's Bank of China, in light of possible US central bank rate cuts.

The broad gauge Hang Seng rose 490.77 to 25,829.91, as gaining issues outnumbered losers 72 to 12. The Hang Seng TECH Index gained 3.1% on the day, while the Mainland Properties Index rose 2.7%.

Leading the upside was Zijin Mining, gaining 6.4%, while Geely Automobile declined 1.3%.

On the mainland, the Shanghai Composite rose 1.5% % to 3,883.56.

On the other regional exchanges, the S. Korean KOSPI rose 1.3%; the Taiwan TWSE gained 2.2%; the Australian ASX 200 advanced 0.1%; the Singapore Straits Times Index rose 0.1%, and the Thai Set rose 0.7%. In late trading in Mumbai, the Sensex was up 0.4%.

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