Asian stock markets showed mixed performance on Tuesday, May 14, 2025, as investors digested Wall Street’s tech-driven rally and reacted to currency movements and macroeconomic signals.
Hong Kong and South Korea Lead the Gains
The Hang Seng Index in Hong Kong climbed over 1%, driven by strong gains in Chinese tech giants like Alibaba and Tencent, which mirrored the overnight rally in U.S. tech stocks.
South Korea’s KOSPI surged 1.5%, buoyed by semiconductor giants Samsung Electronics and SK Hynix, both of which benefited from optimism surrounding the global AI hardware market.
Japan Drags as Yen Strengthens
Japan’s Nikkei 225 dropped 0.8%, while the TOPIX index fell more than 1%. The pullback was attributed to a strengthening yen, which rose on expectations that the Bank of Japan could move toward tightening monetary policy. A stronger yen typically hurts Japanese exporters by making their products less competitive overseas.
Global Sentiment and Outlook
Overall risk sentiment remained cautious despite a temporary U.S.-China tariff truce, which helped ease some trade concerns. Market participants are now awaiting key macroeconomic data, including U.S. retail sales figures, to gauge the Federal Reserve’s next move.
