Asia-Pacific markets traded mixed on Thursday as investors evaluated the implications of the United States’ sweeping 15% tariffs on South Korean imports and awaited the Bank of Japan’s monetary policy decision.
Japan’s central bank is widely expected to keep its short-term interest rate steady at 0.5% for a fourth consecutive meeting, with its two-day policy gathering concluding later in the day.
At 11:10 am AEST (1:10 am GMT), Australia’s S&P/ASX 200 slipped 0.4%, Japan’s Nikkei 225 rose 0.6%, and South Korea’s Kospi 200 was flat.
Economic data across the region surprised to the upside. In South Korea, industrial production rebounded by 1.6% in June, matching expectations and reversing a 3.3% drop in the prior month. Retail sales lifted 0.5%, beating 0.1% decline forecasts.
Japan’s industrial production also beat expectations, rising 1.7% in June compared to the anticipated 0.6% decline. Monthly retail sales climbed 1%, indicating ongoing domestic consumption resilience.
Australian data also outperformed. Retail sales jumped 1.2% in June 2025, seasonally adjusted, and were well ahead of the 0.4% rise expected.
Separately, total dwelling approvals increased 11.9% to 17,076 units, the highest monthly total since August 2022.
In China, official manufacturing PMI data fell to 49.3 in July, below expectations of 49.7, signalling a deeper-than-anticipated contraction amid slowing growth and persistent U.S. trade tensions.
In the U.S. on Wednesday, markets closed mixed after the Federal Reserve held interest rates steady and as investors absorbed a raft of earnings reports.
The Dow Jones Industrial Average fell 0.4%, the S&P 500 edged down 0.1%, and the Nasdaq Composite dipped 0.2%.
Brent crude rallied, rising 1.1% to US$72.57 per barrel, the highest closing level since 23 June. Spot gold declined 1.5% to a four-week low of US$3,275.29 per ounce.
Chinese equities advanced, with the Shanghai Composite gaining 0.2% to 3,615.7, marking its highest close since 8 October 2024. The CSI 300 index ended little changed at 4,151.2.
Hong Kong’s Hang Seng Index dropped 1.4% to 24,982.9, while India’s BSE Sensex added 0.2% to reach 81,481.9.
European markets were marginally higher overnight, as London’s FTSE 100 rose slightly to 9,136.9, Germany’s DAX gained 0.2% to 24,262.2, and France’s CAC 40 added 0.1% to close at 7,862.0.