Equity markets across the Asia-Pacific region surged to record highs on Wednesday, August 13, 2025, mirroring a positive trend on Wall Street. The rally was primarily fueled by U.S. inflation data indicating a milder-than-expected increase, which bolstered investor confidence and heightened expectations for a potential interest rate cut by the Federal Reserve in September. Japan's Nikkei 225 index achieved a historic milestone, surpassing the 43,000-point mark for the first time and closing at a record high. This performance was supported by encouraging U.S. inflation figures, an easing of U.S.-China trade tensions, and positive developments in Japan's manufacturing sector, as indicated by an improved Tankan survey confidence index.
The broader Topix index also reached a new all-time high, reflecting broad-based strength in the Japanese market, with technology stocks like Renesas Electronics and Advantest showing notable gains. South Korea's Kospi index climbed 1.07%, and the Kosdaq rose 0.88%, driven by positive spillover effects from Wall Street and anticipation of lower U.S. interest rates. Major South Korean companies such as Samsung Electronics and SK hynix contributed to the market's advance. In Australia, the S&P/ASX 200 index gained 0.29%. Globally, the MSCI Asia ex-Japan index increased by 0.9%, and the MSCI All Country World Index also touched a record high, signaling widespread investor optimism. The U.S. Consumer Price Index (CPI) for July showed a 2.7% year-on-year increase, slightly below the projected 2.8%, increasing the probability of a 25 basis point Federal Reserve rate cut in September. The extension of the U.S.-China trade truce also contributed to a more favorable risk environment for Asian markets.