Global Stocks Show Divergent Moves: Nikkei Leads Gains, Wall Street Remains Cautious
At the start of the trading week, Monday (September 8, 2025), global equity markets displayed mixed performances. Investor sentiment was shaped by Japan’s political developments, disappointing U.S. economic data, and ongoing speculation about the direction of major central banks’ policies.
Asia: Gains Led by Japan
Asian equities led the rally. The Nikkei 225 rose 1.47% to 43,649.54, supported by the yen’s depreciation to 148.14 per U.S. dollar, which boosted export-oriented sectors. The Topix index also climbed 0.97%, while South Korea’s Kospi advanced 0.98%. Hong Kong and Shanghai markets each gained around 0.33%, while Taiwan outperformed with a 1.30% rise.
In contrast, Australia’s ASX 200 slipped 0.34%, reflecting investor caution. Additional support for the region came from Japan’s revised Q2 GDP, which showed stronger-than-expected growth of 0.5% quarter-on-quarter, marking five consecutive quarters of expansion driven by household spending and business investment.
Indian markets also gained, with the Sensex rising 124.47 points to 80,835.07 and the Nifty 50 up 70 points to 24,809.85.
Europe: Holding Steady Amid Pressure
In Europe, markets remained relatively positive despite headwinds from a stronger euro and U.S. economic uncertainty. The Euro Stoxx 50 fell 0.53% to 5,318.15, dragged down by industrial names such as Siemens and Airbus. In contrast, technology stocks like ASML recorded gains.
London’s FTSE 100 rose 0.29% to 7,892, Germany’s DAX edged 0.13% higher to 15,830, while the pan-European STOXX 600 added 0.2%, extending its recovery trend. Investors are still awaiting the Federal Reserve’s policy direction, with consensus expecting a 25-basis-point rate cut, and some even pricing in the possibility of a 50-basis-point move if inflation data supports it.
Goldman Sachs projects that European equities could climb another 5% over the next 12 months, though risks such as euro strength and trade frictions remain key challenges.
United States: Caution After Weak Jobs Data
On Wall Street, sentiment was cautious after U.S. labor market data came in weaker than expected. The Dow Jones Industrial Average fell 220 points, or 0.48%, to around 45,400.86.
The S&P 500 slipped 0.32% to 6,481.50, though it briefly rebounded in the morning session to 6,491 (+0.15%). On a monthly basis, the index has gained 1.8%, and year-to-date it is up nearly 19%, supported by expectations of Fed rate cuts.
The Nasdaq Composite dipped 0.03% from its recent intraday record high but remained close to its all-time peak near 21,700.