Last week’s Jakota markets:
- Japan’s Nikkei 225 Index rocketed 3.7% to hit a record as the economy’s 0.3% second quarter expansion beat forecasts and BoJ Governor Ueda’s cautious stance on rates boosted confidence
- South Korea’s KOSPI Index added 0.5% despite capital gains tax concerns, buoyed by record semiconductor exports that jumped 14.5% in July to $22.2 billion
- Taiwan’s TAIEX climbed 1.3% as weak U.S. economic data reinforced September rate cut expectations and the government upgraded its growth outlook on AI demand
- The JAKOTA Blue Chip 150 Index advanced 3.0%, with ASICS shares jumping 21% after beating profit forecasts and raising its full year guidance
Japan
Japan’s stock market surged this week, with the Nikkei 225 climbing 3.7% to hit a record high as stronger than expected second quarter growth boosted investor confidence. Robust corporate earnings and signs of easing U.S.-China trade tensions that brightened the global trade outlook further fuelled the rally.
Bank of Japan (BoJ) Governor Kazuo Ueda maintained his cautious stance, noting that underlying inflation remains below the central bank’s 2% target. His remarks stoked speculation that the BoJ could raise short term rates as early as late this year or early 2026.
Japan’s economy expanded 0.3% in the second quarter of 2025, outpacing forecasts despite headwinds from U.S. tariffs. The growth topped the revised 0.1% gain in the prior quarter and beat the consensus forecast of 0.1%, reinforcing expectations that the BoJ can proceed with gradual monetary tightening.
The expansion was powered by a sharp rebound in exports as companies accelerated shipments to the U.S. ahead of tariffs, while capital spending remained solid and household consumption surpassed estimates.
South Korea
South Korea’s stock market posted gains this week, with the KOSPI Index adding 0.5% as growing expectations for Federal Reserve monetary easing spurred foreign buying. However, moves to reinstate higher capital gains taxes are now dampening investor sentiment.
South Korea’s exports of information and communication technology (ICT) products jumped 14.5% in July from a year earlier, driven by record semiconductor sales. Outbound shipments climbed to $22.2 billion from $19.4 billion a year ago.
Taiwan
Taiwan’s stock market advanced this week, with the TAIEX gaining 1.3% as softer U.S. inflation data and weaker jobs numbers fuelled expectations of a Federal Reserve rate cut in September. Optimism over AI demand provided additional support.
Taiwan’s government on Friday sharply raised its 2025 growth forecast to 4.45% from 3.1% in May, citing surging exports and private investment driven by robust global demand for AI.
JAKOTA Blue Chip 150 Index
The JAKOTA Blue Chip 150 Index rose 3.0% this week, with 108 of the 150 constituents posting gains.
ASICS, a Japanese multinational corporation that specialises in sportswear, emerged as the top performer on the JAKOTA Blue Chip 150 Index with shares soaring more than 21% after the company reported stronger than expected second quarter earnings and raised its full year outlook.
ASICS reported second quarter operating profit of ¥36.6 billion, a 45% year-over-year increase that significantly exceeded the FactSet consensus estimate of ¥31.1 billion. Company sales outperformed internal projections by ¥10.9 billion, while operating profit exceeded forecasts by ¥8.6 billion. Cost management contributed to the profit beat, with ¥3.4 billion stemming from reduced selling, general and administrative (SG&A) expenses.
ASICS also raised its dividend to ¥28 per share from ¥26 and revised its full year forecast upward by ¥16 billion. The revision includes ¥12.1 billion from first half outperformance and an additional ¥3.9 billion added to second half projections.
Nippon Paint, a Japanese paint and paint products manufacturer, was the worst performer among JAKOTA Blue Chip 150 constituents this week with shares plummeting more than 14% after investors sold on disappointment that the company left its full year earnings outlook unchanged. The stock tumbled despite strong first half results, as markets had anticipated an upward revision to guidance following the company’s January-June outperformance.
