Nikkei 225 surged 1.28%, its largest gain since June, while Hang Seng futures fell 0.7% and the Kospi lost 0.62%. Japan’s broader Topix slipped 0.56%, and the yen remained steady at 157.39 per dollar. The offshore yuan hovered at 6.7086, echoing the subdued tone that set the GIFT Nifty.
On Wall Street, the S&P 500 shed 70 points from its intraday high and closed 0.25% lower, its worst month since June, while the Nasdaq 100 finished 0.2% higher after Micron Technology warned that its profit margins would narrow. The US PCE index rose 0.3% month‑on‑month in August, exactly matching forecasts, but the annual rate ticked up to 3.4%, well below the 3.7% economists had projected.
The Fed’s preferred gauge, the PCE, nudging core PCE to 3% YoY against a 3.3% expectation, has cut the odds of a rate hike at the October meeting to under 40%. Short‑dated Treasury yields barely moved, while 30‑year yields stayed near their highest level since 2002, reflecting the market’s reassessment of monetary policy.
In Tokyo, the Bank of Japan’s September 17‑18 meeting minutes revealed a 7‑2 vote to lift the policy rate to 1.25%, the highest level since 1995, a move that follows a June hike and signals a shift from the 13‑year gradualist stance. Governor Kazuo Ueda’s board now aims to anchor inflation closer to the 2% target, acknowledging that a neutral rate might be higher than previously estimated.
Oil markets closed with Brent at $98 a barrel after a sharp intraday spike to $104, while WTI slipped 0.4% to $90.07 for November delivery. JPMorgan Chase & Co analysts noted that West Asian crude flows are approaching pre‑war levels, a rebound that remains uneven amid ongoing conflicts.
Looking ahead, traders will keep an eye on the Fed’s October policy decision and the upcoming earnings releases from tech giants, while Asian markets brace for potential volatility as the global supply chain tightens. Market participants are recalibrating expectations for the next quarter, with a focus on inflation trends and commodity pricing.