October 24, 2025

Asian stock markets kicked off the day on a down note after a wild rollercoaster ride on Wall Street. Japan and South Korea’s main stock indexes dropped over 1%, shaking investors early on. Tech stocks took a hit, with Netflix falling 10% after disappointing numbers, and Tesla sliding as its earnings missed expectations despite strong sales. The Nasdaq 100 index also slipped 1%, dragged down by a cautious outlook from Texas Instruments. Adding to the turmoil, fresh trade tensions bubbled up between the US and China. The Trump administration revealed it’s considering new limits on software exports to China, stirring worries among traders. Meanwhile, oil prices jumped nearly 3% following new US sanctions targeting Russia’s biggest oil producers, as Washington tries to pressure President Vladimir Putin to stop the war in Ukraine. This boost sent oil prices soaring, shaking energy markets. In the bond market, things stayed steady with 10-year Treasury yields holding firm at about 3.95%, and a strong $13 billion sale of 20-year bonds drew investor interest. The dollar index stayed mostly unchanged, while gold prices slipped for the third straight day. Retail momentum trades took a beating—this means stocks linked to popular trends like precious metals, cryptocurrencies, and artificial intelligence companies faced sharp losses. The Bloomberg US Pure Momentum Portfolio, a favorite of quant investors, has recently tumbled. Analysts from Bespoke Investment Group remarked, “It appears that, at least temporarily, the music has stopped and the party has ended for the most-speculative names.” They warned these highflying stocks could fall even harder, saying, “No one knows when the music will pick back up again, but usually, the higher they go, the harder they fall.” Over in Japan, new Prime Minister Sanae Takaichi ordered fresh economic measures to help families and businesses fight ongoing inflation. However, shares of key tech firms Disco Corp. and Lasertec Corp. plunged over 4%, dragging down the Nikkei 225 index. In an upbeat twist, US companies are showing strong profits this quarter. The number of firms exceeding profit expectations is the highest since 2021, even though analysts had set a tough bar. Dubravko Lakos-Bujas from JPMorgan Chase said, “Companies should continue to deliver superior earnings growth supported by a robust AI investment cycle, ongoing deficit spending and a still-resilient consumer.” On another front, the US Federal Reserve revealed plans to soften strict bank capital rules introduced during the Biden administration for big Wall Street banks. But there’s also some bad news for Fed watchers: the Fed no longer receives private-sector employment data from ADP Research, which covers about 20% of US private jobs. This loss adds to the challenge of understanding the economy fully amid the continuing federal government shutdown. In short, markets are riding a wave of ups and downs, with trade tensions, oil shocks, and earnings surprises stirring a thrilling yet jittery cocktail for investors worldwide.

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Tags: Asian markets, Wall street, Us-china trade, Oil sanctions, Us earnings, Federal reserve,