Asian Markets Rally as Hong Kong and Tokyo Lead Gains

Asian stock markets closed higher on Tuesday (18), with strong rallies in Hong Kong and major Japanese trading companies boosting investor sentiment. The positive momentum was driven by China's new measures to stimulate consumer spending and increased investments by Warren Buffett’s Berkshire Hathaway in Japanese trading firms.

Hong Kong and Japan at the Forefront

Leading the Asian surge, Hong Kong’s Hang Seng index jumped 2.46%, reaching 24,740.57 points. Key contributors to the rally included consumer sector stocks such as Midea Group (+10%) and Haier Smart Home (+3%), following China’s announcement of policies to encourage greater household spending. Electric vehicle makers also surged, with Nio (+8.95%), Li Auto (+6.8%), and BYD (+4.1%) posting strong gains, alongside tech giants Baidu (+12.2%) and Alibaba (+5.8%).

In Japan, the Nikkei 225 rose 1.20%, closing at 37,845.42 points, buoyed by major Japanese trading firms. The rally followed news that Warren Buffett’s Berkshire Hathaway increased its stake in several Japanese companies, including Mitsubishi Corp. (+3.6%) and Marubeni Corp. (+3.5%).

Broader Asian Market Performance

Elsewhere in Asia, market movements were more moderate:

• South Korea’s Kospi edged up 0.06% to 2,612.34 points.

• Taiwan’s Taiex gained 0.69%, closing at 22,271.67 points.

• Shanghai Composite in mainland China rose 0.11% to 3,429.76 points, while the Shenzhen Composite advanced 0.49% to 2,122.66 points.

  
  

Wall Street’s Influence and Central Bank Decisions Awaited

Risk appetite in Asia was further fueled by Wall Street’s continued recovery, with U.S. markets posting gains for the second consecutive session on Monday. The rebound followed a period of sharp losses driven by concerns over the Trump administration’s tariff policies.

Investors are now turning their attention to key central bank decisions, with both the Bank of Japan (BoJ) and the U.S. Federal Reserve (Fed) expected to announce their latest monetary policy decisions on Wednesday (19). Analysts widely anticipate that both institutions will maintain their benchmark interest rates unchanged.

Australian Market Also in the Green

In Oceania, the Australian stock market extended its winning streak to a third consecutive session. The S&P/ASX 200 edged up 0.08%, closing at 7,860.40 points in Sydney.

With market optimism running high, all eyes are now on the upcoming central bank meetings and further developments in China’s economic policies.