Asian markets edge higher amid global policy easing and political uncertainties

Asian share markets close a pivotal week with gains driven by expectations of further monetary stimulus amidst ongoing geopolitical and domestic political uncertainties, notably in Japan and China, amid mixed central bank decisions worldwide.

Asian share markets are poised to close a pivotal week positively, buoyed by widespread anticipation of further monetary stimulus amid global economic uncertainties. Japan’s Nikkei, in particular, reached another record high, climbing 0.7 percent, reflecting investor confidence that the Bank of Japan (BOJ) will maintain its accommodative monetary policy. This outlook is shaped by ongoing domestic political uncertainties and the upcoming Liberal Democratic Party leadership election on October 4. Core inflation data in Japan, showing a 2.7 percent year-on-year rise for August—the slowest in nine months but still above the BOJ’s 2 percent target—has reinforced expectations that the central bank will delay any rate hike until the political landscape clarifies.

This week saw key central banks take varied approaches: the U.S., Canada, and Norway each cut interest rates, while the Bank of England kept its benchmark unchanged at 4 percent. According to global macro strategists, policymakers remain cautious amid economic uncertainty, limiting surprises with a general anticipation of additional rate cuts in the near future. South Korea’s market retreated slightly but stayed near record highs, with weekly gains pushing the index up nearly 8 percent over the past two weeks, indicative of strong regional momentum amid cautious optimism.

Global markets have also been shaped by significant developments in the U.S., where stock indices such as the S&P 500, Dow Jones, and Nasdaq closed at record highs, supported by robust jobless claims data and notable corporate news, including Nvidia’s pledge of a $5 billion investment into Intel. This announcement propelled Intel shares up 23 percent and Nvidia by 3.5 percent, boosting tech sector confidence. Despite the cautious monetary stance, U.S. Treasury yields hovered around 4.11 percent, suggesting that investors remain watchful of inflation and growth indicators.

Currency markets reflected these dynamics, with the U.S. dollar regaining some ground after a recent slide following the Federal Reserve’s first rate cut in nine months. The dollar index steadied near 97.42, recovering from a multi-year low. Meanwhile, the Japanese yen held steady around 148 per dollar, though analysts noted that political developments, including policy signals from LDP leadership candidates like Sanae Takaichi, could soon influence the yen’s trajectory, given her inclination towards continued accommodative fiscal and monetary policy. The Norwegian crown weakened following the Norges Bank’s rate cut, while the British pound slipped amid the Bank of England’s decision to maintain rates.

In Asia, broader MSCI indices showed mixed but overall positive sentiment, with the Asia-Pacific shares outside Japan inching up 0.5 percent for the week, hovering near four-year highs. Chinese blue chips rose modestly ahead of a high-profile phone call expected between U.S. President Donald Trump and China’s Xi Jinping, amid ongoing tensions surrounding tech policies and trade issues like TikTok negotiations and restrictions on AI chip acquisitions. Hong Kong’s Hang Seng index moderated slightly in advance of the call, reflecting investor caution.

Commodity markets remained relatively stable, with oil prices steady following a recent dip, and spot gold holding firm near record levels. Both markets reflect ongoing uncertainty and cautious positioning ahead of key global policy decisions and economic data releases.

Overall, the week underscored a landscape where central banks are navigating the fine balance between supporting growth and containing inflation, while investors remain alert to geopolitical developments, political uncertainties, and macroeconomic signals. This delicate interplay will likely continue to influence market sentiment in the coming weeks.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
8

Notes:
The narrative is current, published on September 19, 2025. Similar content appeared on September 12, 2025, but with different figures and dates, indicating freshness. The report is based on a press release, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found.

Quotes check

Score:
9

Notes:
No direct quotes were identified in the provided text, suggesting potential originality or exclusivity. The absence of quotes may indicate a higher freshness score.

Source reliability

Score:
9

Notes:
The narrative originates from Channel News Asia (CNA), a reputable organisation known for its comprehensive coverage of Asian markets. This enhances the credibility of the report.

Plausability check

Score:
8

Notes:
The claims align with recent market trends and central bank activities. The Bank of Japan’s accommodative monetary policy and the upcoming Liberal Democratic Party leadership election on October 4 are well-documented. The report lacks specific factual anchors, such as names, institutions, and dates, which slightly reduces its score. The language and tone are consistent with financial reporting standards.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary:
The narrative is current and based on a press release, enhancing its freshness. It originates from a reputable source, CNA, and aligns with recent market developments. The absence of direct quotes and specific factual anchors slightly reduces its score, but overall, the report is credible.