Asian Markets Mixed Amid US Tariff Concerns & China‘s Rally; Nikon Surges on‌ Stake Potential

Hong‍ Kong/Sydney – August‍ 26, 2025 – Asian markets presented a⁢ mixed⁤ picture Wednesday ⁢as investors digested news of⁣ escalating US tariffs⁤ on India and awaited key earnings reports from the US, ‍while China’s stock market ‌continued a strong run despite warnings of potential overvaluation.Industrial profits in China slipped 1.5% year-on-year in July, though this represents‍ a recovery from more‍ important declines in previous months. Concurrently, new US tariffs of 25% on Indian goods are set to go into⁤ effect Wednesday, effectively doubling overall⁢ duties on Indian exports to the US to 50%. Indian markets were closed today for a holiday.

Japan’s Nikkei 225 edged higher, boosted by a surge in Nikon Corporation shares. Nikon jumped over 20% as of 10:04 p.m. ET Tuesday⁢ following reports from Bloomberg that EssilorLuxottica, the parent company⁢ of Ray-Ban, is ⁢considering⁢ increasing​ its stake in the photographic equipment manufacturer. The broader Topix index, however, fell 0.3%.

South Korea’s Kospi⁤ declined⁣ 0.17%,⁢ marking its second consecutive session of losses. The Kosdaq, focused on smaller companies, also decreased, falling 0.16%. Australia’s S&P/ASX 200 ⁣managed a gain of 0.15%.

Hong Kong’s Hang Seng index rose 0.27%, and mainland⁤ China’s CSI 300 increased 0.4%, though this snapped a four-day winning streak. The CSI​ 300 has experienced considerable growth⁣ this year, climbing over 13% year-to-date,​ prompting some analysts to express concerns about “irrational exuberance.”

“Sentiment is becoming excessively optimistic,” noted ​hao⁢ Hong, Managing Partner and ⁤CIO of Lotus ⁤Asset Management. Though,‍ he cautioned that⁤ it’s “too ⁤early” to definitively label ‌the market a bubble, adding, “Given the improving liquidity conditions and​ a dovish Fed, any correction will tend to be shallow and brief.”

US Markets advance Despite Political​ Uncertainty

Overnight in ‌the United States, all three major benchmarks closed higher. The S&P 500 rose 0.41% to settle at 6,465.94, as investors appeared⁤ to look ⁢past president‌ Donald‍ Trump’s removal of Federal Reserve Governor Lisa Cook ⁢from the central‌ bank’s board. Market participants are now focused on quarterly earnings reports, notably those of chip giant Nvidia.

The Nasdaq ​Composite added‌ 0.44%, ⁢closing at 21,544.27, while the Dow Jones Industrial Average gained 135.60 points, ​or 0.30%, finishing at ​45,418.07.

Context & Analysis:

The imposition of higher tariffs on India reflects ongoing trade tensions between the two countries, potentially impacting a range of Indian exports and adding to⁤ global economic uncertainty.The specific goods targeted by the tariffs were not detailed in the⁢ report.

China’s market rally, while impressive, is being closely ⁤watched by economists.The⁢ People’s Bank⁣ of China’s (PBOC) easing of⁤ monetary⁣ policy and increased liquidity are ⁢contributing factors,‍ but the sustainability of the growth is being questioned. The⁤ PBOC has been implementing measures to stimulate the economy following a period of slower growth.

The potential deal between EssilorLuxottica ⁣and Nikon highlights the ongoing consolidation within the‍ optics and imaging industries. EssilorLuxottica, formed through the merger of Essilor​ and ⁢Luxottica, is a dominant player in eyewear, and‌ a larger stake in Nikon could provide access to advanced lens technologies and manufacturing⁣ capabilities.

The removal of Lisa Cook from the Federal Reserve‌ board by President Trump adds another ​layer of political uncertainty to⁢ the US economic landscape. Cook, a prominent economist, was the first ⁣Black⁣ woman ⁣to serve on the Federal Reserve Board. Her⁢ departure could ‌shift the balance of power within the central bank and potentially influence future monetary policy decisions.

Reporting by CNBC’s Sean Conlon,‍ Sarah Min and ⁤Christina Cheddar Berk.