Asian stock markets up and down: interest rate fantasy and profit-taking dominate!

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Asia's stock markets show inconsistent trends on May 16, 2025, influenced by economic data and geopolitical tensions.

Asian stock markets up and down: interest rate fantasy and profit-taking dominate!

On Friday, May 16, 2025, stock markets in East Asia are showing mixed trends. Profit-taking dominates the action, especially after recent gains. The markets will also be influenced by the rapprochement between the USA and China in the tariff dispute, as the upcoming weekend also plays a role. This raises hopes for positive developments, although the situation in Ukraine and the lack of progress in diplomatic efforts in Turkey have suffered a setback.

Guidance from the US is slightly positive, supported by favorable price data and weak retail sales, fueling fantasies of interest rate cuts. However, current economic data from Europe and the USA indicate a slowdown. An example of this are the disappointing quarterly figures that analysts are looking at not only from the USA, but also from Tesla specifically, which leads to overall negative market sentiment.

Stock market indices at a glance

In Tokyo, the Nikkei 225 index remained almost unchanged at 37,748 points, while Hong Kong and Shanghai recorded declines of 0.8% and 0.5%, respectively. The Kospi in Seoul rose 0.1% and the S&P/ASX-200 in Sydney rose 0.5%. The current situation can be summarized as follows:

Stock market index Stand the change
S&P/ASX 200 (Sydney) 8,342.20 +0.5%
Nikkei-225 (Tokyo) 37,747.57 -0.0%
Kospi (Seoul) 2,624.58 +0.1%
Shanghai Comp. 3,363.32 -0.5%
Hang Seng (Hong Kong) 23,262.80 -0.8%

Market developments and outlook

The Australian central bank will decide on interest rate policy next week; Inflation and labor market data are within expected limits. Japan reported a contraction in GDP of 0.2% in the first quarter, which is also weighing on the markets here. The yen has stabilized, which could slow the stock market. In addition, expectations regarding future company data are muted, which has a negative impact on investor sentiment.

The development of local stocks is particularly striking. While Netease shares rise 13% in Hong Kong, disappointing sales performance sends Alibaba down 5.3%. In Sydney, Monadelphous is up 1.5% as the company records new orders.

Developments on the raw material markets also show relevant changes. Oil prices show slight gains with WTI at $61.80 and Brent at $64.67, while metal prices such as gold ($3,217.35) and silver ($28.94) show declines. Foreign exchange rates such as EUR/USD are trading at 1.1198 (+0.1%), indicating a rather stable currency environment.

In summary, uncertainty remains about the future development of the stock markets. While lower interest rates could fuel hopes of a recovery, overall investor sentiment remains tense given the current economic challenges. This means that market participants are increasingly focusing on negative economic data and the possible risk of a major sell-off, which is putting prices under pressure. Those interested can find more information about this at finanzen.ch and finanzmarktwelt.de.