1. Asia-Pacific markets trade mixed, breaking ranks with Wall Street: Markets Wrap
Asia-Pacific markets traded mixed Friday, breaking ranks with Wall Street, with investors assessing economic data from Japan. Japan’s Nikkei 225 slid 0.26% to close at 42,718.47, while the Topix lost 0.47% to 3,075.18 after core consumer prices in Tokyo rose at a slower pace in August. The Tokyo core CPI, which strips out fresh food but includes energy, climbed 2.5% from a year earlier, matching Reuters’ economists’ forecasts, and easing from July’s 2.9% increase. The figure, however, remained above the Bank of Japan’s 2% target. Japan’s unemployment rate also eased to 2.3% in July, down from 2.5% the previous month. South Korea’s Kospi lost 0.32% to 3,186.01 while the Kosdaq Index slipped 0.19% to 796.91 after South Korea’s ex-first lady Kim Keon Hee was reportedly indicted over corruption and bribery charges.
2. Stocks close lower, but S&P 500 notches its 4th winning month in a row
The S&P 500 ended the day 0.64% lower at 6,460.26, but still scored its fourth winning month in a row. The Nasdaq Composite shed 1.15% to finish at 21,455.55, while the Dow Jones Industrial Average lost 92.02 points, or 0.20%, to settle at 45,544.88. Core PCE, a key inflation measure watched by the Federal Reserve which excludes the costs of food and energy, increased 2.9% in July, in-line with expectations but an acceleration from the prior month and the highest level since February. Stocks fell on Friday as investors took some money off the table into a long weekend following a new S&P 500 record and solid Nvidia earnings this week. New inflation data showed rising prices was still a risk heading into the new month.
3. Gold on track for best month in four as inflation data bolsters rate cut bets
Gold prices rose around 1% on Friday and were poised for their best monthly performance since April, as U.S. inflation data reinforced expectations that the Federal Reserve could cut interest rates next month. Spot gold was up 0.9% at $3,447.09 per ounce. Bullion has gained 4.8% in August. U.S. gold futures for December delivery rose 1.2% to $3,515.70. U.S. consumer spending increased solidly in July while underlying inflation picked up as tariffs on imports raised prices of some goods. The U.S. Personal Consumption Expenditures Price index rose 0.2% month-on-month, and was up 2.6% on a year-on-year basis – both in line with expectations.
4. Oil prices fall with expected weaker demand, possible peace deal
Oil prices fell on Friday as traders looked toward weaker demand in the U.S., the world’s largest oil market, and possible behind-the-scenes moves towards a deal for a ceasefire in Ukraine. Brent crude futures for October delivery fell 50 cents, or 0.73%, to close at $68.12 per barrel, while West Texas Intermediate crude futures lost 59 cents, or 0.91%, to settle at $64.01 a barrel. Crude output has increased from the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, as the group has accelerated output hikes to regain market share, raising the supply outlook and weighing on global oil prices. Investors are also watching for India’s response to pressure from the United States to stop buying Russian oil, after U.S. President Donald Trump doubled tariffs on imports from India to as much as 50% on Wednesday.
5. Most Trump tariffs ruled illegal by appeals court, dealing major blow to trade policy
A federal appeals court ruled Friday that most of President Donald Trump’s global tariffs are illegal, striking a massive blow to the core of his aggressive trade policy. The U.S. Court of Appeals for the Federal Circuit held in a 7-4 ruling that the law Trump invoked when he granted his most expansive tariffs — including his “reciprocal” tariffs — does not actually grant him the power to impose those levies. “The core Congressional power to impose taxes such as tariffs is vested exclusively in the legislative branch by the Constitution,” the court said. “Tariffs are a core Congressional power.” The appellate court paused its ruling from taking effect until Oct. 14, in order to give the Trump administration time to ask the Supreme Court to reverse the decision. The case was consolidated from two separate lawsuits, one filed by a dozen states and the other by five small U.S. businesses.
6. Post-war Gaza plan sees relocation of population, ‘digital token’ for Palestinian land, reportedly
A post-war plan for Gaza is circulating within President Donald Trump’s administration that would see the U.S. administer the war-torn enclave for at least a decade, the relocation of Gaza’s population and its rebuilding as a tourist resort and manufacturing hub. Reports said that according to a 38-page prospectus it had seen, Gaza’s 2 million population would at least temporarily leave either through “voluntary” departures to another country or into restricted areas within the territory during reconstruction. There is a proposal to build large-scale camps called “Humanitarian Transit Areas” inside — and possibly outside — Gaza to house the Palestinian population. That plan carried the name of the U.S.-backed Gaza Humanitarian Foundation, or GHF, a controversial U.S.-backed aid group. Anyone who owns land would be offered a “digital token” in exchange for rights to redevelop their property, the Post reported, adding that each Palestinian who left would be provided with $5,000 in cash and subsidies to cover four years of rent. They would also be provided with a year of food, it added.
7. India and China are partners, not rivals, Modi and Xi say
India and China are development partners, not rivals, Prime Minister Narendra Modi and Chinese President Xi Jinping agreed on Sunday, as they discussed ways to improve trade ties amid global tariff uncertainty. Modi is in China for the first time in seven years to attend a two-day meeting of the Shanghai Cooperation Organisation regional security bloc, along with Russian President Vladimir Putin and leaders from Iran, Pakistan and four Central Asian states in a show of Global South solidarity. Modi told Xi his country was committed to improving ties with China and discussed reducing India’s burgeoning bilateral trade deficit of nearly $99.2 billion, while emphasizing the need to maintain peace and stability at their disputed border after a clash in 2020 triggered a five-year military standoff.
8. Federal judge issues order blocking Trump effort to expand speedy deportations of migrants
A federal judge on Friday temporarily blocked the Trump administration from carrying out speedy deportations of undocumented migrants detained in the interior of the United States. The move is a setback for the Republican administration’s efforts to expand the use of the federal expedited removal statute to quickly remove some migrants in the country illegally without appearing before a judge first. President Donald Trump promised to engineer a massive deportation operation during his 2024 campaign if voters returned him to the White House. And he set a goal of carrying out 1 million deportations a year in his second term.
9. Alibaba misses revenue estimates, but AI boosts cloud business, shares up 12.9%
China’s Alibaba said on Friday artificial intelligence was key to expanding its cloud computing business, as it reported strong quarterly growth in the sector despite its wider operations missing revenue estimates. U.S.-listed shares in the company were up 12.9%. Revenue in Alibaba’s cloud segment surged 26% to 33.40 billion yuan ($4.67 billion), easily beating an expected 18.4% rise. However, that was eclipsed by weaker than expected growth in its e-commerce business, leaving overall revenue lagging estimates by 2%. Alibaba has been among the most aggressive players in China’s AI sector, unveiling upgrades on an almost weekly basis. Over the past four quarters, the firm has cumulatively invested over 100 billion yuan in AI infrastructure and AI product research and development, Group CEO Eddie Wu told analysts on a call.
10. BYD shares drop 8% as Q2 profit slides amid growing competition
Shares of Chinese electric vehicle maker dropped 8% to a near five-month low on Monday after the company reported a sharp drop in second-quarter net profit. BYD’s net income declined 30% year-on-year to 6.4 billion yuan ($895 million), marking its first quarterly profit decrease in over three years. The company attributed the drop to intense domestic price competition and a 1 billion yuan incentive paid to dealers, which had limited impact on boosting sales. BYD sold 2.49 million vehicles by the end of July, reaching 45% of its 2025 global sales target of 5.5 million units. Gross margins fell to 16.3% from 18.7% a year earlier. Hong Kong-listed shares of the company dropped as much as 8% to HK$105.20, reaching their lowest level since early April.
11. Marvell sinks as weak data centre outlook stokes custom AI chip worries
Shares of Marvell Technology slumped nearly 18% on Friday, as the chipmaker’s data centre demand outlook fell short of lofty expectations owing to irregular sales of its custom AI chips to cloud giants. Investor expectations for chipmakers are elevated after their valuations have sky-rocketed due to Wall Street’s picks-and-shovels AI trade, but market bellwether Nvidia’s latest earnings cast doubt over demand from cloud providers. Marvell CEO Matt Murphy said on post-earnings call on Thursday that data centre revenue in the third quarter would be sequentially flat, worrying investors and analysts about growth in its key segment that reflects demand for hardware used in AI data centres. The networking chipmaker’s revenue is increasingly driven by its custom chip business which services cloud providers such as Amazon and Nvidia who are developing in-house capabilities to reduce their dependence on Nvidia.
12. Dell slides as high AI server costs, competition blunt upbeat demand forecast
Shares of Dell Technologies fell about 10% on Friday, as high manufacturing costs for AI-optimized servers and intensifying competition overshadowed the company’s bullish demand forecast for artificial intelligence infrastructure. The stock is set to lose roughly $8 billion of its $91 billion market capitalization if losses hold. AI server demand remained a bright spot for the company. Dell raised its annual shipment forecast to $20 billion from $15 billion, citing strong orders from customers including Elon Musk’s xAI and cloud provider CoreWeave. Dell prioritized fulfilling AI server orders over maintaining margins, as supply chain disruptions and expedited shipping costs added to the profit squeeze from competitive pricing strategies aimed at landing large customer contracts.