Central Bank Outlooks Move Asian Stock Markets

05:42 AM EST, 12/05/2025 (MT Newswires) -- Asian stock exchanges largely gained on Friday on rising expectations that the Federal Reserve will cut rates at its mid-December meeting, following recent soft US labor market reports.

Hong Kong and Shanghai finished in the green, while Tokyo fell back. Other regional exchanges were mixed on the high side.

In Japan, the Nikkei 225 opened lower and could not recover, finishing off 1.1% on investor anticipation that the Bank of Japan will next week raise interest rates, in contrast to the US central bank. A stronger yen pressured export issues.

The benchmark Nikkei 225 fell 536.55 to 50,491.87, as losing issues outnumbered gainers 181 to 42.

Leading the upside was electronics and ceramics maker Ibiden, up 6.9%, while cybersecurity outfit Trend Micro declined 8.9%.

In economic news, Japan's leading index of business conditions rose to 110.0 in October from 108.2 in September, and striking further above the 100-mark that separates expected growth from contraction, reported the Cabinet Office.

In Hong Kong, the Hang Seng Index opened lower but rose to the close, finishing up 0.6% as traders bought into markets after recent bear moves.

The broad gauge Hang Seng rose 149.18 to 26,085.08, as gaining issues outnumbered losers 52 to 35. The Hang Seng TECH Index gained 0.8% on the day, while the Mainland Properties Index rose 0.3%.

Leading the upside was insurer Ping An, gaining 6.7%, while knitwear-maker Shenzhou International declined 3.4%.

On the mainland, the Shanghai Composite rose 0.7% to 3,902.81.

On the other regional exchanges, the S. Korean KOSPI rose 1.8%; the Taiwan TWSE added 0.7%; the Australian ASX 200 rose 0.2%; the Singapore Straits Times Index fell 0.1%, and exchange in Bangkok were closed on holiday. In late trading in Mumbai, the Sensex was up 0.5%.

In other news, citing headline inflation that "declined to an all-time low in October," the Reserve Bank of India (RBI) lowered its key policy rate to 5.00% from 5.25% on Friday.

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