SINGAPORE – Asian stocks limped into Friday’s session on uncertain footing, as declines on Wall Street rippled across global markets and commodity prices eased after a powerful rally.
Despite the day’s caution, regional equities remain poised for one of their best years in a decade, outperforming US markets as President Donald Trump’s economic and tariff policies fuel a manufacturing surge in AI-linked hardware across Asia.
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The MSCI Asia-Pacific Index (ex-Japan) slipped 0.2%, balancing weekly gains as US markets closed lower overnight. Hong Kong shares fell 1.1%, while Australia dipped 0.1%. South Korea outperformed with a 1.7% jump, extending its strong 2025 run. “High-momentum trades — from gold to crypto — are showing signs of fatigue,” said Chris Weston, Head of Research at Pepperstone Group, noting a cooling in overbought assets.
US S&P 500 futures edged up 0.2% in Asian trading, while the US dollar index steadied near a two-month high at 99.37. Benchmark 10-year US Treasury yields slipped slightly to 4.138%, as traders maintained expectations for a 25-basis-point Fed rate cut later this month. Japan’s Nikkei 225 slid 0.7%, retreating after hitting record highs earlier in the week.
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Fresh data showed wholesale prices rising 2.7% year-on-year, reinforcing speculation that the Bank of Japan may tighten policy at its October 30 meeting. Meanwhile, the yen hovered near an eight-month low at ¥152.96 per dollar, after newly elected ruling party leader Sanae Takaichi said monetary policy must align with government goals — a comment traders saw as testing the central bank’s independence. “The government is expected to pursue expansionary fiscal policies,” analysts at Bank of America wrote, “but uncertainty remains about the scope and impact.”
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Gold prices eased 0.1% to $3,971.93 per ounce, extending Thursday’s pullback after briefly topping $4,000 for the first time. Silver edged up 1% to $49.62, while Brent crude added 0.1% to $65.27 per barrel, steadying after Israel ratified a ceasefire with Hamas, setting the stage for a truce and hostage releases in Gaza. Chinese markets slumped as Beijing tightened rare earth export controls, rattling investors ahead of upcoming Trump–Xi trade talks. Despite Friday’s hesitation, Asia’s equity surge — powered by technology exports, resilient currencies, and easing inflation — remains the global bright spot heading into the final quarter of 2025.