Asia report: Markets defy Wall Street to rally higher
By Josh White
Date: Wednesday 15 Oct 2025
(Sharecast News) - Asia-Pacific equities advanced on Wednesday, breaking ranks with Wall Street's overnight declines as investors shrugged off renewed trade tensions between the United States and China.
The region's gains came after US president Donald Trump criticised Beijing for failing to purchase American soybeans, describing it as "an economically hostile act" and threatening "retribution", including a possible cooking oil embargo.
Despite the heated rhetoric, Asian markets traded broadly higher across the board.
"Stocks and futures made gains, while the collar took a hit, as growing optimism about a potential Fed rate cut fuelled risk-taking and overshadowed renewed tensions in US-China trade relations," said Patrick Munnelly at TickMill.
"Asian markets experienced a notable rally, jumping 1.5% - marking their first advance in four days."
He added that global markets had "staged an impressive rebound since the tariff-driven selloff in April, buoyed by hopes of further monetary easing after the Fed's September rate reduction and enthusiasm surrounding advancements in AI."
Markets rise across the region
In Japan, the Nikkei 225 jumped 1.78% to 47,682.00, supported by strong performances from Mercari, up 14.18%, Aeon, which gained 9.4%, and Kubota Corporation, rising 7.79%.
The broader Topix index climbed 1.58% to 3,183.64.
Munnelly noted that "on the political front, Japan's opposition party leaders are set to meet on Wednesday to explore ways to bridge their policy differences and potentially unite behind a single candidate for the country's top leadership position amidst growing political uncertainty," adding a layer of domestic focus to Japan's otherwise risk-driven market rally.
China's benchmarks also strengthened, with the Shanghai Composite gaining 1.22% to 3,912.21 and the Shenzhen Component up 1.73% at 13,118.75.
Energy and investment names led the rally, including Shanxi Guoxin Energy, Henan Dayou Energy and Shenzhen Heungkong, each rising around 10%.
Hong Kong's Hang Seng Index advanced 1.84% to 25,910.60, buoyed by solid moves in China Life Insurance, up 6.02%, JD Health International, which added 5.82%, and restaurant chain Haidilao International, up 5.31%.
South Korea's Kospi 100 surged 2.75% to 3,863.45, led by Hanmi Semiconductor, up 10.33%, Samsung Biologics, rising 9.74%, and Doosan Enerbility, which gained 9.37%.
In Australia, the S&P/ASX 200 rose 1.03% to 8,990.90, with notable gains from Telix Pharmaceuticals, up 16.3%, IperionX, climbing 10.98%, and Liontown Resources, which advanced 9.26%.
New Zealand's S&P/NZX 50 added 0.23% to 13,307.40, helped by KMD Brands, Scales Corporation and Vector, up 4.92%, 4.21% and 3.96% respectively.
Munnelly said the global rally "faces fresh challenges as US-China trade tensions resurface.
"Both nations have ramped up rhetoric and hinted at possible new restrictions targeting critical technologies, adding uncertainty to the outlook."
He also noted that "the European Union is reportedly weighing an aggressive new policy that could require Chinese companies to share their technology with European firms as a condition for operating within the bloc."
In currencies, the dollar weakened across the region, slipping 0.29% against the yen to trade at JPY 151.40, 0.47% against the Aussie to AUD 1.5345, and 0.14% on the Kiwi to change hands at NZD 1.7469.
"The collar extended its decline for a second consecutive day, lifting Asian currencies in the process, while two-year Treasury yields hovered near their lowest levels since 2022," Munnelly observed.
"Gold, on the other hand, soared to a fresh record high," he added, as investors priced in an increased likelihood of a Fed rate cut in October.
Oil prices were slightly softer, with Brent crude futures last down 0.21% on ICE at $62.26 per barrel, and the NYMEX quote for West Texas Intermediate easing 0.12% to $58.63.
Consumer prices fall more than expected in China
In economic news, China's consumer prices fell more than expected in September, highlighting persistent weakness in domestic demand and ongoing pressure on the economy from trade uncertainty.
Data from the National Bureau of Statistics showed the consumer price index declined 0.3% year-on-year, a steeper fall than the 0.2% drop economists had forecast, though easing slightly from August's 0.4% decline.
On a monthly basis, prices edged up just 0.1%, undershooting expectations for a 0.2% rise.
The figures also showed producer price deflation continuing for another month, reinforcing signs of subdued business confidence and limited pricing power among manufacturers.
Reporting by Josh White for Sharecast.com.
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