September 1, 2025 Global Stock Market Report: Asia Rebounds Amid September Risk Concerns, US Markets Closed

As of September 1, global stock markets showed a rebound in Asia and a slight increase in Europe, with Wall Street closed for the US Labor Day holiday. Despite concerns that September is historically the most challenging month for stock markets, some regions are showing positive signs.

[Major Index Status]

US markets were closed on September 1 due to the Labor Day holiday. Trading in the S&P 500, Dow Jones, and Nasdaq were all halted.

However, S&P 500 futures rose 0.3%, showing a positive signal. News that the US Federal Appeals Court ruled that President Trump's extensive tariff policies were unlawful also contributed positively to the market.

[August Performance Review]

The S&P 500 closed higher for the fourth consecutive month in August, demonstrating overall market resilience despite a correction in technology stocks.

[China Market Strength]

China's Shanghai Composite Index opened at 3,869.75 points, up 11.82 points (0.31%), while the Shenzhen Component Index rose 77.07 points (0.61%) to 12,773.22 points.

Hong Kong's Hang Seng Index opened at 25,508.21 points, up 430.59 points (1.72%), demonstrating the strongest gains. This was primarily driven by the surge in Chinese technology stocks.

[Korean and Japanese Markets]

South Korea's KOSPI opened at 3,164.58 points, down 21.43 points (0.67%), and Japan's Nikkei 225 index opened at 42,362.71 points, down 355.76 points (0.83%).

Australia's S&P/ASX 200 index fell 48.90 points (0.54%) to 8,924.20 points.

[Indian Market Surge]

Indian markets saw the most notable performance on September 1st. The Sensex surged 555 points to close at 80,364, and the Nifty surpassed the 24,600 level.

Strong GDP growth was the primary driver of the rally, with the auto, IT, and metals sectors performing particularly well. The Nifty rebounded sharply from a 0.3% drop the previous day.

[Major Indices]

European markets opened higher across the board on September 1st. Euro Stoxx 50 futures rose 0.3%, and defense stocks gained following the UK-Norway warship deal.

Germany's DAX index rose 86.45 points (0.36%) to 23,988.66 points, while the UK's FTSE 100 rose 11.65 points (0.13%) to 9,198.99 points.

France's CAC 40 rose slightly 1.05 points (0.01%) to 7,704.95 points.

[Bond Market Pressure]

Long-term bonds in Europe remain under pressure. This is interpreted as reflecting inflation concerns and uncertainty about central bank policy.

[Improving Indian Economic Indicators]

India's robust GDP growth rate had a significant positive impact on the market. The Sensex surged 555 points, reaffirming its 80,000-point mark.

The automotive, IT, and metal sectors outperformed, leading the broader sector rally.

[Resurrection of Chinese Tech Stocks]

Chinese tech stocks surged. The 1.72% surge in the Hong Kong Hang Seng Index is believed to have been primarily driven by the strength of tech stocks.

[Major Currency Trends]

The US dollar index fell 0.16% to 97.68. It has fallen 10.59% since the beginning of the year and 3.95% over the past year, continuing the weak dollar trend.

The ruling that Trump's tariff policy was illegal appears to be negatively impacting the dollar.

[Crude Oil Market]

Brent crude oil is trading near $67, while WTI is hovering below $64. While stabilizing after a monthly decline, the market remains unsettled amid oversupply concerns and geopolitical tensions.

[Key Events for the Next Two Weeks]

The next 14 trading days will be a critical period for determining the market's direction, with the employment report, core inflation data, and the Federal Reserve's interest rate decision all scheduled.

[Indian Market Sector Analysis]

In India, the automotive sector performed particularly well. Ahead of the August auto sales data release, the sector responded positively despite concerns about a slowdown in sales before the GST rate cut.

The IT and metals sectors also outperformed, demonstrating the diversified growth of the Indian economy.

[Concerns about Seasonal Weakness]

September is historically known as the most challenging month for the stock market. Experts are concerned that various risks are accumulating rapidly as the summer trading slowdown ends.

[Key Risk Factors]

- US Employment Data: August Employment Report scheduled for release on September 5th

- Federal Reserve Interest Rate Decision: September FOMC Meeting Results

- Inflation Indicator: Core CPI Release

- Tariff Policy: Uncertainty over the Trump Administration's Trade Policy

[Short-Term Outlook]

The US market closure has provided an opportunity for global markets to move according to their respective fundamentals. The strength of Asian markets, particularly China and India, is attracting attention.

[Investment Opportunities]

The improving GDP and sector-specific strength in the Indian market are providing mid- to long-term investment opportunities. The resurgence of Chinese technology stocks is also a positive signal for Asian market investors.

The rise of European defense stocks is an example of the defense industry benefiting amid geopolitical tensions.

[Risk Management]

Given the seasonal weakness in September and the release of various economic indicators, it seems advisable to focus on reducing positions and managing risk. Key events over the next two weeks are expected to determine market direction.