Asian Shares Little Changed In Muted Trading

Asian stocks ended little changed in muted trading on Thursday as an AI-driven rally showed signs of fatigue and hopes of aggressive Fed rate cuts faded.

Amid renewed concerns stemming from a U.S. labor market slowdown and sticky inflation, investors awaited more U.S. economic data, including jobless claims and PCE inflation data for directional cues.

China’s Shanghai Composite Index ended just below the unchanged line at 3,853.80. U.S. President Donald Trump is expected to sign the TikTok deal later today, according to reports.

Hong Kong’s Hang Seng Index edged down 0.1 percent to 26,484.68 as the city returned to normalcy after Super Typhoon Ragasa.

Japanese markets ended modestly higher after minutes from the Bank of Japan’s July meeting signaled policymakers remain inclined to resume interest rate hikes in the future if economic and price conditions develop as expected.

The Nikkei 225 Index rose 0.3 percent to 45,754.93, as the 40-year bond yield dropped to a one-month low after strong demand at an auction.

The broader Topix Index settled 0.5 percent higher at 3,185.35 ahead of Friday’s Tokyo inflation report, which may provide additional direction on the policy outlook.

Seoul stocks ended little changed, with the Kospi finishing marginally lower at 3,471.11 amid tariff concerns.

South Korea’s investment projects in the U.S. will remain in limbo until visa issues are resolved, South Korea’s Prime Minister Kim Min-seok said in an interview with Bloomberg.

Australian markets finished marginally higher after a choppy session as a rally in copper miners due to a sharp jump in metal prices offset losses among banks and gold stocks.

Woodside Energy Group rallied 2.5 percent after it signed an agreement to supply about 5.8 billion cubic meters of liquefied natural gas to Turkish state-owned petroleum company BOTAS.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index slipped 0.2 percent to 13,153.79, reversing gains from the previous session.

The dollar held steady in Asian trading and gold held near record levels, while oil prices pulled back after climbing by over 2 percent on Wednesday.

U.S. stocks ended lower for a second straight session overnight as investors reacted to mixed messages from Fed officials on interest rates as well as Alibaba’s plans to up AI spending by $53 billion.

Investors ignored data that showed sales of new U.S. single-family homes surged to the highest level in more than 3-1/2 years in August, as mortgage rates began to ease and builders offered discounts to lure in buyers.

The Dow dipped 0.4 percent, while the tech-heavy Nasdaq Composite and the S&P 500 both fell around 0.3 percent.