A seven-day rally in global equities paused during Thursday’s Asian session, following a mixed overnight performance on Wall Street. The and slid 0.7% and 1.4%, respectively, while the and pushed to fresh record highs, up 0.1% and 0.3%.
Gains were driven by mega-cap tech names including Nvidia (NASDAQ:) (+1.7%), Amazon (NASDAQ:) (+1.7%), Microsoft (NASDAQ:) (+1%), and Alphabet (NASDAQ:) (+0.9%).
Asia’s Longest Winning Streak Since January Ends
Asia-Pacific markets snapped their longest winning streak of the year. Hong Kong’s dropped 0.9% intraday after hitting a 3.5-year high, while Japan’s fell 0.9%, just shy of its all-time peak at 42,427. Singapore’s also saw profit-taking, down 0.3% after a record-breaking 14-session rally.
Profit-taking and the US Dollar Rebound Pressure Asian Equities
Today’s Asian regional pullback likely reflects overbought conditions and a technical rebound in the after a four-day losing streak. The ’s intraday firm tone is weighing on risk assets in Asia as traders reassess their short-term bullish momentum.
The worst performers against the US dollar at this time of writing are (-0.17%), (-0.16%), and (-0.13%)
The intraday bounce seen in the US dollar is also reinforced by a slowdown in growth in Japan’s leading inflation gauge, where Tokyo’s core- (excluding food and energy) advanced at a slower pace of 2.9% y/y in July, a drop from 3.1% recorded in June.
Gold Slips Further as US Dollar Firms, Support Levels in Focus
Gold () declined for the third straight session, falling 0.4% intraday. The yellow metal is now approaching key support at its 20- and 50-day moving averages near US$3,333, amid headwinds from a strengthening US dollar.
Economic Data Releases
Fig 1: Key data for today’s Asia mid-session (Source: MarketPulse)
Chart of the Day – Hang Seng Index At Risk of Minor Corrective Decline
Fig 2: Hong Kong 33 CFD Index minor & medium-term trends as of 25 July 2025 (Source: TradingView)
The price actions of the Hong Kong 33 CFD Index (a proxy of the ) have rallied as expected.
The two weeks of advancement have hit the upper boundary of a major ascending channel from the January 2024 low, now acting as an intermediate resistance at 25,750. The hourly RSI momentum indicator has just staged a bearish breakdown below a parallel ascending support from 19 June.
These observations suggest that bullish momentum has waned, and the Hong Kong 33 CFD Index is likely to stage a potential imminent minor corrective decline to retrace some of the gains seen from the prior rally from the 4 July 2025 low to the 24 July 2025 high (see Fig. 2).
Watch the 25,750 key short-term pivotal resistance, and a break below 25,260 may reinforce the minor corrective decline sequence on the Hong Kong 33 CFD Index to expose the next intermediate support at 24,940/850.
On the flipside, a clearance above 25,750 revives the bullish tone for the continuation of the bullish impulsive up move sequence to seek out the next intermediate resistance at 26,030/26,220 (Fibonacci extension and medium-term swing high areas of 20/26 October 2021).
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