Asian stock markets extended losses on Thursday, led by steep declines in Japan and China, after reports surfaced that the United States may tighten export restrictions on China. The renewed trade tension between the world’s two largest economies weighed heavily on investor sentiment across the region.
A Reuters report revealed that Washington is considering curbing software-powered exports to China, including laptops, jet engines, and advanced technology products. The potential move, reportedly still under discussion, is seen as leverage against Beijing’s recent rare earth export restrictions. The development comes ahead of a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping, highlighting the fragile state of U.S.-China relations.
The news triggered declines across major Asian indices. China’s Shanghai Shenzhen CSI 300 dropped 0.6%, and the Shanghai Composite fell 0.7%, while Hong Kong’s Hang Seng was flat, dragged by a 0.8% fall in the Hang Seng TECH Index.
Japan’s Nikkei 225 fell 1.3%, extending its pullback after a record-breaking rally earlier this week. The broader TOPIX shed 0.5% as investors booked profits amid uncertainty over Prime Minister Sanae Takaichi’s upcoming economic stimulus package. The new plan, expected to exceed last year’s 13.9 trillion yen program, aims to tackle inflation and support household spending.
In contrast, South Korea’s KOSPI index rose 0.3% to a new record high of 3,895.09 after the Bank of Korea kept its key interest rate steady at 2.5% for the third consecutive meeting. The decision underscored the central bank’s focus on economic stability, with analysts forecasting a potential rate cut in November.
Elsewhere, Australia’s S&P/ASX 200 and Singapore’s Straits Times Index traded flat, while India’s Nifty 50 futures edged slightly lower. Investors now await key U.S. inflation data ahead of next week’s Federal Reserve policy meeting, where a rate cut is widely anticipated.


Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike
Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai
European Stocks Rise as Markets Await Key U.S. Inflation Data
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 



