On Sept. 4, 2025 in Singapore, Asian equities mostly climbed after several Federal Reserve officials signaled support for interest-rate reductions and a smooth auction of long-dated Japanese government debt eased bond-market strains; Chinese shares were an exception, falling sharply amid reports of regulatory steps to cool speculation.
Key Takeaways
- Major Asia-Pacific indexes largely advanced, led by gains in Japan, Australia and India.
- China’s CSI 300 fell as much as 2.6%, marking the biggest drop since April and a third consecutive day of losses.
- Dovish remarks from Fed officials and weaker US job-openings data boosted odds of a September rate cut.
- Long-dated bond sell-off slowed after Japan’s super-long debt auction drew buyers, tempering broader market anxiety.
- Traders now price a near-certain chance of a Fed cut this month, according to the CME Group’s FedWatch tool.
- Key market metrics: Nikkei +1.6%, ASX +1.0%, Sensex +1.1%; 10-year U.S. Treasury ~4.2226%, two-year ~3.6187%.
Verified Facts
Asian equity moves were mixed on Thursday. Japan’s Nikkei 225 climbed about 1.6% and Australia’s ASX rose roughly 1.0%, while India’s Sensex opened around 1.1% higher following government tax cuts aimed at boosting consumption. By contrast, China’s CSI 300 index fell up to 2.6% after media reports suggested regulators were preparing measures to cool speculative activity.
Sentiment improved after Federal Reserve officials, including Governor Christopher Waller, made comments interpreted as supportive of rate reductions in the months ahead. The latest U.S. JOLTS report showed job openings at a 10-month low, adding pressure on the Fed to ease policy—moves markets see as favorable for risk assets.
| Market / Indicator | Move / Level |
|---|---|
| MSCI Asia-Pacific ex-Japan | down ~0.2% (gave up earlier gains) |
| CSI 300 (China) | down as much as 2.6% |
| Nikkei 225 (Japan) | +1.6% |
| ASX (Australia) | +1.0% |
| Sensex (India) | +1.1% |
| 10-year U.S. Treasury yield | ~4.2226% |
| 2-year U.S. Treasury yield | ~3.6187% |
| Dollar/Yen | ~148.25 |
| Brent crude | $67.17 / bbl (-0.6%) |
| Spot gold | $3,529.94 / oz (-0.8%) |
Bond markets showed some stabilization after the overnight sell-off in longer-dated debt cooled. Japan’s super-long bond auction was reported to have drawn sufficient demand, which helped relieve pressure that had earlier pushed long-term yields toward multi-year highs.
Context & Impact
Markets entered September with elevated caution: a prior bout of selling in long-term government bonds had raised concerns about fiscal health and borrowing costs in major economies, including Japan, the United States and Britain. That backdrop made investors sensitive to any signals on central-bank policy and domestic fiscal moves.
The combination of softer U.S. labor-market indicators and comments from Fed officials shifted expectations quickly toward policy easing. Traders now assign a very high probability to a rate cut at the Fed’s September meeting, according to CME Group’s FedWatch estimates, which in turn supports risk-on positioning.
For China, regulatory concerns remain a key downside risk. Reports of intervention to rein in speculative trading amplified local selling and outweighed the broader Asian rebound, creating divergence within the region.
- Near-term: markets may stay volatile if new data or official remarks shift the perceived timing of Fed easing.
- Medium-term: an actual Fed cut could reinforce gains in equities but may keep safe-haven flows sensitive to fiscal signals and Chinese policy moves.
Federal Reserve officials’ recent public remarks have been viewed by markets as supporting rate reductions in coming months.
Fed officials / market commentary
Unconfirmed
- Bloomberg reported that Chinese financial regulators were preparing measures to cool speculation in local markets; this report has not been officially confirmed by Chinese authorities.
Bottom Line
On Sept. 4, risk appetite in Asia improved as dovish Fed signals and softer U.S. job openings strengthened expectations for imminent rate cuts, while a smooth Japanese bond sale relieved some pressure in long-dated markets. Still, China’s sell-off and lingering fiscal concerns keep the region vulnerable to renewed volatility.