Japan Stocks Surge on SoftBank Earnings as Asia Dips Amid Trade Tensions

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•  08 Aug 2025
 

Asia markets delivered a mixed performance to close out the week, with Japan standing tall on the back of strong earnings and positive macro data, while other major indices across the region declined under the weight of economic uncertainty and rising geopolitical tensions. Meanwhile, U.S. futures held steady after a volatile session, as Wall Street continues to grapple with valuation concerns and seasonal weakness.

Nikkei 225 jumped 1.74% to 41,775 points, fueled by sharp gains in technology and cyclical consumer stocks. The standout performer was SoftBank, which soared 13% to a record high after releasing stronger-than-expected earnings. The broader Topix index also made headlines by crossing the symbolic 3,000 mark for the first time, helped by a surprise current account surplus in June that boosted investor confidence.

China’s Shanghai Composite slipped 0.2% to 3,632, as investors reacted to weaker credit and consumption data, ongoing real estate market stress, and continued uncertainty around Beijing’s policy direction—particularly in the housing sector. Hong Kong’s Hang Seng dropped 1.06% to 24,814, with technology stocks dragging the index down amid fears of tighter Chinese regulations and the potential fallout from new U.S. tariffs.

India’s Nifty 50 declined 0.66% to 24,434, rattled by President Trump’s declaration of a 50% tariff on Indian exports, which drew a sharp rebuke from New Delhi. The Indian government accused Washington of hypocrisy, pointing to the U.S.’s continued trade with Russia as a contradiction. Meanwhile, in Australia, the ASX 200 dipped 0.28% to 8,806 as mining and energy stocks retreated, with concerns rising over import-driven inflation that may impact future rate cut expectations.

On Wall Street, futures were mostly flat in early Friday trade. Dow Jones futures rose by 0.1%, while the S&P 500 and Nasdaq both edged up around 0.2%. This follows a mixed U.S. session the day before, where the S&P 500 retreated after a strong run that saw it climb nearly 30% since April. While the Nasdaq managed a modest gain of 0.3%, the overall tone turned cautious as investors weighed high valuations and the historical weakness of the August–September period.

Investor sentiment appears to be shifting. The latest AAII survey revealed a sharp 10-point increase in bearish sentiment—the biggest weekly jump since February. Paradoxically, some analysts interpret this as a short-term bullish signal, suggesting that retail investors may have already trimmed positions, creating space for institutional capital to step in.