Asia markets track Wall Street gains as Fed rate-cut hopes rise — South Korea’s Kospi hits record high

Lead

Asia-Pacific markets climbed on Wednesday, September 10, 2025, as investors followed Wall Street gains and growing optimism that the Federal Reserve may begin cutting interest rates. The region reacted also to China’s August inflation data, which showed consumer prices falling 0.4% year on year. South Korea’s Kospi rose to a record 3,317.77, extending a seven-session advance, while major indexes from Hong Kong to Australia moved higher. US futures ticked up as traders awaited domestic PPI and CPI releases later in the week.

Key takeaways

• Mainland China’s CSI 300 climbed 0.46% on the session, reflecting selective buying in mainland stocks.
• Hong Kong’s Hang Seng jumped 1.35% to its highest level since late 2021; the Hang Seng Tech index gained 1.82%.
• China’s consumer price index fell 0.4% year on year in August, missing economists’ median expectation of a 0.2% decline; producer prices fell 2.9% year on year, improving from July’s 3.6% drop.
• Alibaba’s Hong Kong-listed shares rose 2.1% after earlier reaching a near four-year high; Alibaba Cloud-led funding of X Square Robot was reported at about $100 million.
• South Korea’s Kospi advanced 1.75% to a record 3,317.77, while the Kosdaq added 0.53%; the country’s seasonally adjusted unemployment rate edged up to 2.6% in August from 2.5% in July.
• Japan’s Nikkei 225 rose 0.72% and the Topix gained 0.53%; Australia’s S&P/ASX 200 was up 0.35%.
• India’s Nifty 50 and Sensex rose 0.56% and 0.54%, respectively; Singapore’s Straits Times Index jumped over 1% to 4,341.32, a record high.
• US benchmarks closed at all-time highs overnight: S&P 500 6,512.61 (+0.27%), Nasdaq Composite 21,879.49 (+0.37%), Dow Jones 45,711.34 (+196.39, +0.43%).

Background

Global markets have spent the summer reassessing the timing and scale of Federal Reserve easing. Weaker-than-expected US jobs data and softer inflation readings have increased the probability that the Fed will begin cutting rates next year, a change that typically boosts risk assets. Asian markets, which are sensitive to both US monetary policy and regional growth data, have traded with heightened correlation to Wall Street moves.

China’s domestic data is an important counterweight for regional sentiment. A continuing slide in consumer and producer prices signals disinflationary pressure that complicates Beijing’s growth strategy; policymakers face a trade-off between stimulus to lift demand and the risk of further price weakness. Corporate developments—such as funding for robotics startups and the performance of large tech names—are also feeding sector-level rallies across regional exchanges.

Main event

On September 10, trading opened on an upbeat note across Asia after US equities finished at record highs the previous session. Investors bought cyclicals and tech-linked names; mainland benchmarks and Hong Kong-listed counters posted solid gains. Market breadth favored risk assets as futures markets priced in a higher chance of Fed easing in coming quarters, supporting flows into equities and some emerging-market currencies.

In China, the National Bureau of Statistics’ August release showed CPI at -0.4% year on year and PPI at -2.9%, data points that traders parsed for signs of weaker domestic demand. Hong Kong shares of Alibaba rose more than 2%, hitting earlier session highs, helped by renewed interest in cloud-related investments and reports that Alibaba Cloud led a roughly $100 million funding round into X Square Robot.

South Korea’s market was a standout: the Kospi advanced 1.75% to an all-time high of 3,317.77, reaching that level after seven consecutive sessions of gains. Domestic employment data showed the seasonally adjusted unemployment rate ticked up to 2.6% in August from 2.5% in July, a small move that has so far not dampened investor appetite. Regional movers included Taiwan and Korea components in Apple’s supply chain, which generally traded higher after Apple’s product launches, even as Apple’s shares fell 1.48% on the session.

Analysis & implications

The immediate market response shows investors are increasingly focused on the Fed’s policy path as the primary driver of asset allocation. When the Fed appears likely to ease, long-duration assets and equity risk tend to benefit; that dynamic helps explain the synchronous rallies in US and Asian stocks. However, the timing and magnitude of actual cuts remain uncertain and will depend on incoming US inflation and labor-market prints.

China’s ongoing disinflation presents a mixed picture for the region. A softer CPI can reduce inflation-linked upside for global rates and support equity valuations, but it also signals persistent demand weakness that could weigh on trade partners and commodity exporters. For policymakers in Beijing, weaker prices raise the urgency of targeted support aimed at bolstering consumption without underwriting asset bubbles.

The record for South Korea’s Kospi underscores the strong risk-on tone, but it also raises questions about concentration and valuation. A prolonged rally driven by rate-cut expectations could be vulnerable if US data reasserts stronger inflation or a stickier labor market. Regional equities tied to global tech cycles are additionally sensitive to product-cycle news from companies such as Apple and to funding flows into emerging-market tech ventures.

Comparison & data

The table highlights how regional moves on September 10 tracked a global risk-on impulse led by US market strength; China data added a local narrative of disinflation while corporate and tech-specific news supported select rallies. Investors should weigh sequential improvements in PPI against persistent CPI weakness when assessing earnings and revenue prospects for export-oriented firms.

Reactions & quotes

Market participants and data providers gave succinct context to the trading day; the following excerpts capture prevailing interpretations.

“Consumer prices fell 0.4% year on year in August,”

National Bureau of Statistics (data release)

This statement accompanied the official China data release that traders cited when reassessing domestic demand and inflation trends.

“Stronger odds of Fed easing have lifted sentiment across equity markets,”

Market strategists (aggregated commentary)

Analysts summarized the cross-border flow dynamics: softer US and Chinese data have together nudged expectations toward a more accommodative Fed path, encouraging risk-taking in equities.

“Apple’s new product cycle produced mixed reactions across supply-chain names,”

Equity analyst (technology)

Tech analysts noted that while some suppliers such as Foxconn and Samsung saw gains, the iPhone maker itself closed lower, reflecting nuanced investor responses to product announcements.

Unconfirmed

• Whether the Federal Reserve will cut rates and on what timetable remains uncertain; current market pricing reflects bets but not policy commitments.
• Characterizations that investors were broadly “unimpressed” by Apple’s new lineup are an interpretation of price moves and may not reflect broader institutional positioning.
• The reported motivations and longer-term plans behind Indonesia’s cabinet change have not been fully disclosed by official sources and remain subject to confirmation.

Bottom line

Markets in Asia followed Wall Street higher on September 10 as elevated expectations for Fed easing and mixed-but-softer Chinese inflation data encouraged risk-taking. South Korea’s Kospi reached 3,317.77, a record level, reflecting concentrated buying alongside broad regional gains. Traders should treat the current rally as contingent on upcoming US inflation prints and the evolution of China demand signals; either could rapidly alter monetary expectations and asset prices.

For investors, the near-term outlook hinges on the PPI and CPI releases in the United States and any follow-through in China growth indicators. Portfolio decisions should balance the potential upside from easier global policy against risks stemming from persistent demand weakness in major economies.

Sources

• CNBC (news report summarizing market moves and data)
• National Bureau of Statistics of China (official government data release)
• U.S. Bureau of Labor Statistics (official PPI/CPI schedules and releases)