Asia report: Markets lower, SoftBank falls on Intel investment
By Josh White
Date: Tuesday 19 Aug 2025
(Sharecast News) - Asia-Pacific markets ended mostly lower on Tuesday, following Wall Street's overnight decline and with investors cautious ahead of the US Federal Reserve meeting later this week.
Political focus also remained on talks at the White House between US president Donald Trump, Ukraine's president Volodymyr Zelenskyy and European leaders, aimed at halting the conflict with Moscow.
Patrick Munnelly, market strategy partner at TickMill, noted that "financial markets remained stable, with global stocks near all-time highs following Donald Trump's discussions with Ukraine's president and European officials, which concluded with a proposal for a summit with Russia."
He added that "market sentiment was cautiously optimistic regarding the Ukraine peace talks after Trump encouraged Vladimir Putin to start planning a summit with Zelenskiy."
Markets lower as world watches Ukraine talks
In Tokyo, the Nikkei 225 slipped 0.33% to 43,571.50 after hitting a record high in the previous session.
SoftBank Group shares tumbled 4.01%, snapping a nine-day winning streak, after the company announced a $2bn investment in Intel, paying $23 per share for stock that closed at $23.66 in New York overnight.
Japan Steel Works fell 3.99% and Resona Holdings lost 3.86%, while the broader Topix eased 0.14% to 3,116.63.
Munnelly pointed out that "Japanese government bond futures fell further after a 20-year government bond auction attracted weak interest," while Treasuries remained steady after S&P Global Ratings reaffirmed its AA+ long-term and A-1+ short-term ratings for the US.
On the mainland, the Shanghai Composite edged down 0.02% to 3,727.29, while the Shenzhen Component dropped 0.12% to 11,821.63.
Losses were led by sharp declines in Jiangsu Hongtian Technology, Shanghai Rongtai Health Technology and Beijing Tricolor Technology, each down 10%.
Hong Kong's Hang Seng Index eased 0.05% to 25,165.00, pressured by Sino Biopharmaceutical, down 6.57%, WuXi AppTec, off 5.16%, and BYD Electronic International, which slid 4.67%.
Munnelly said "last week's economic data from China highlighted the ongoing challenges Beijing faces in using fiscal measures to bolster growth," pointing to slowing retail sales and industrial production, fragile household confidence, and falling property values as persistent drags on momentum.
In Seoul, the Kospi 100 fell 0.67% to 3,194.19.
Doosan Enerbility dropped 8.6%, Hanwha Techwin slid 6.87% and Hyundai Heavy Industries retreated 5.99%.
Sydney's S&P/ASX 200 declined 0.7% to 8,896.20, with heavy losses in CSL, which sank 16.89%.
Reliance Worldwide Corporation fell 6.74% and Polynovo shed 6.64%.
In New Zealand, the S&P/NZX 50 slipped 0.32% to 12,928.68, weighed down by KMD Brands, down 3.92%, Fletcher Building, off 2.23%, and Spark New Zealand, which fell 1.98%.
On the currency front, the dollar was last down 0.17% on the yen to trade at JPY 147.64, while it strengthened 0.12% against the Aussie to AUD 1.5424, and advanced 0.09% on the Kiwi to change hands at NZD 1.6901.
Oil prices declined, with Brent crude futures last down 0.92% on ICE at $65.99 per barrel, and the NYMEX quote for West Texas Intermediate off 0.96% at $62.81.
According to Munnelly, "oil prices dipped by 0.7% amid speculation that a ceasefire might result in increased Russian supplies."
Consumer confidence jumps in Australia
In economic news, Australian consumer confidence jumped to its highest level in more than three years in August, buoyed by interest rate cuts and easing cost-of-living pressures, according to a Westpac-Melbourne Institute survey.
The consumer sentiment index rose 5.7% to 98.5, its strongest reading since early 2022, after edging up just 0.6% to 93.1 in July.
While still below the 100-point threshold that separates optimism from pessimism, the survey noted the rebound leaves sentiment only 1.6% shy of turning net positive.
"This long run of consumer pessimism may finally be coming to an end," the report said.
The survey showed households were less anxious about personal finances and more upbeat about the economic outlook over the next year.
Westpac economists attributed the improvement to the Reserve Bank of Australia's three interest rate reductions so far in 2025, which had eased mortgage stress and supported expectations of further relief.
Gains were evident across both mortgage holders and renters, who have experienced some moderation in cost pressures.
"While the latest interest rate cut was a clear positive, some of the latest lift may also reflect easing tariff-related uncertainty," Westpac said.
The bank said it expected the RBA to hold cash rates steady at its September meeting before delivering another 25 basis point cut in November, with policy decisions guided by incoming data.
Munnelly added that "investors are gearing up for a crucial week as the Federal Reserve's annual Economic Policy Symposium begins on Thursday in Jackson Hole, Wyoming, which could provide insights into future interest rate directions."
He also noted that "Bitcoin may experience heightened profit-taking as traders anticipate Fed Chair Powell's address at the yearly Jackson Hole Economic Symposium," given the uncertainty around the Fed's next policy move.
Reporting by Josh White for Sharecast.com.
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