Asian stock markets presented a mixed picture at Thursday’s open, with investors navigating a complex landscape of falling Japanese exports, a record-setting rally in Singapore, and continued uncertainty over US trade and monetary policy.
This varied backdrop pointed to a flat start for Indian benchmarks like the Sensex, as traders assessed the latest developments.
The trading day began with weakness in Tokyo. As of 8:11 a.m. Singapore time, Japan’s Nikkei 225 benchmark fell 0.6%, while the broader Topix index ticked down 0.11%.
This came as data showed that Japan’s exports fell for the second consecutive month, a worrying sign for the trade-dependent economy.
In stark contrast, Singapore’s 30-stock benchmark Straits Times Index extended its impressive winning streak to a ninth consecutive day, hitting a fresh all-time high of 4,154.13 earlier in the session.
The index was last up 0.39% at 4,148.28 as of 10 a.m. local time, with gains led by the technology, consumer non-cyclicals, and financials sectors.
This rally was fueled by outstanding economic data; Singapore’s non-oil domestic exports surged by 13% in June compared to the same period last year, dramatically surpassing the 5% growth forecast by economists polled by Reuters.
This marked the sharpest increase since July 2024, according to LSEG data, driven by higher shipments of electronic products, non-monetary gold, and specialized machinery.
Elsewhere in the region, performance was varied. In South Korea, the Kospi index dropped 0.26%, while the small-cap Kosdaq was flat.
Over in Australia, the S&P/ASX 200 benchmark managed to add 0.35%. Chinese and Hong Kong-listed stocks also started the day higher amidst the choppy trading in other key markets, with the Hang Seng Index adding 0.26% and the mainland’s CSI 300 moving up 0.16% as of 9:40 a.m. local time.
US policy uncertainty: Trump on Powell and tariffs
A significant source of market chatter was US President Donald Trump’s comments regarding the future of Federal Reserve Chairman Jerome Powell and his ongoing trade policies.
On Wednesday, President Trump denied the possibility of firing Chairman Powell, just hours after he had reportedly told a room full of Republican lawmakers that he would do just that.
“We’re not planning on doing it,” Trump said at a meeting with Bahrain’s Crown Prince Salman bin Hamad Al Khalifa at the White House. However, he quickly added a layer of ambiguity: “I don’t rule out anything, but I think it’s highly unlikely, unless he has to leave for fraud.”
At the same meeting, President Trump also reiterated his hardline stance on Japan, stating that a 25% tariff would apply to Japanese imports and that he does not expect to reach a broader trade deal with the country.
Indian markets: a cautious but optimistic start for Sensex
Indian benchmark indices opened flat on Thursday. The BSE Sensex was seen rising a slight 66 points to 82,637, while the NSE Nifty slipped marginally to 25,209 in early trade.
The overall market sentiment is being described as cautiously optimistic. This is partly bolstered by US President Donald Trump’s recent statement that a US–India trade deal is nearing finalization, a development that analysts believe will be favorable for Indian corporations.
This positive sentiment is shifting investor focus toward key domestic policy proposals and the upcoming corporate earnings season. Q1 results are due from major companies including Axis Bank, Wipro, Jio Financial, LTI Mindtree, HDFC AMC, and Indian Hotels.
Derivatives data reflects a guarded optimism, with the Put-Call Ratio improving slightly to 0.80. However, continued short positions from Foreign Portfolio Investors (FPIs) and low volatility (with the India VIX down 2.09%) hint at an underlying caution.
Analysts suggest that resistance levels near 25,500 could cap any significant upside unless decisively breached. For now, the market is expected to consolidate, with stock-specific movements driving near-term action.
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