Asian Shares Mostly Gain After Uptick in Inflation Pulls US Stocks Lower
usnews.com -- Friday, August 15, 2025, 1:57:39 AM Eastern Daylight Time
Categories: U.S.–China Relations, Economic Policy & Jobs, Trade Policy & Tariffs
MANILA, Philippines (AP) -- Asian are mostly higher after most stocks on Wall Street fell following a disappointing report that said inflation was worse last month at the U.S. wholesale level than economists had expected.
U.S. futures rose while oil prices slipped.
China reported data showing its economy was feeling pressure from higher U.S. tariffs in July, while property investments fell further.
Retail sales rose 3.7% year-on-year, down from 4.8% in June, while investments in factory equipment and other fixed assets rose a meager 1.6%, compared with 2.8% growth in January-June.
Uncertainty over tariffs on exports to the United States is still looming over manufacturers after President Donald Trump extended a pause in sharp hikes in import duties for 90 days following a 90-day pause that began in May.
The Shanghai Composite index added 0.5% to 3,683.58, but Hong Kong's Hang Seng index fell 1.2% to 25,216.45.
"Chinese economic activity slowed across the board in July, with retail sales, fixed asset investment, and value added of industry growth all reaching the lowest levels of the year. After a strong start, several months of cooling momentum suggest that the economy may need further policy support," ING Economics said in a market commentary.
In Japan, the Nikkei 225 gained 1.2% to 43,152.55 after the government reported that the economy grew at a 1% annual pace in the April-June quarter. That was better than analysts had expected.
Elsewhere in Asia, South Korea's Kospi edged less than 0.1% higher to 3,225.66.
Australia's S&P/ASX 200 rose 0.4% to 8,909.20. Taiwan's TAIEX gained 0.3%.
Attention later Friday will likely focus on an update on U.S. retail sales and on a meeting between President Donald Trump and Russian President Vladimir Putin.
On Thursday, seven out of every 10 stocks within the S&P 500 fell, though the index edged up by less than 0.1% to set another all-time high. The Dow Jones Industrial Average dipped 11 points, or less than 0.1%, and the Nasdaq composite fell less than 0.1% from its record set the day before.
The inflation report said that prices jumped 3.3% last month at the U.S. wholesale level from a year earlier. That was well above the 2.5% rate that economists had forecast, and it could hint at higher inflation ahead for U.S. shoppers as higher costs make their way through the system.
The data led traders to second guess their widespread consensus that the Federal Reserve will cut interest rates at its next meeting in September. Lower rates can boost investment prices and the economy by making it cheaper for U.S. households and businesses to borrow to buy houses, cars or equipment, but they also risk worsening inflation.
Higher interest rates drag on all kinds of companies by keeping the cost to borrow high. They can hurt smaller companies in particular because they often need to borrow to grow. The Russell 2000 index of smaller U.S. stocks tumbled a market-leading 1.2%.
Thursday's disappointing data followed an encouraging update earlier in the week on prices at the consumer level. A separate report on Thursday, meanwhile, said fewer U.S. workers applied for unemployment benefits last week. That's a good sign for workers, indicating that layoffs remain relatively low at a time when job openings have become more difficult to find.
But a solid job market could also give the Fed less reason to cut interest rates in the short term.
Big Tech stocks helped mask Wall Street's losses. Amazon rose 2.9% to add to its gains from the prior day when it announced same-day delivery of fresh groceries in more than 1,000 cities and towns.
Because Amazon is so huge, with a market value of $2.45 trillion, the movements for its stock carry much more weight on the S&P 500 than the typical company's.
In other dealings early Friday, U.S. benchmark crude lost 16 cents to $63.80 per barrel. Brent crude, the international standard, fell 13 cents to $66.71 per barrel.
The dollar edged lower to 147.14 Japanese yen early from 147.20 yen. The euro rose to $1.1665 from $1.1654.
___
AP Business Writer Stan Choe contributed.
Sign Our PetitionThe recent shifts in Asian stock markets, influenced by fluctuating inflation rates in the United States, highlight a complex web of economic interdependencies that extends far beyond simple market numbers. The rise in wholesale inflation, which exceeded economists' expectations, has not only impacted U.S. stocks but also reverberated across global markets, especially in Asia. This situation underscores the interconnectedness of economies in a globalized world and serves as a reminder of the systemic issues inherent in capitalist frameworks. In examining these developments, it is crucial to consider the historical context of economic policy decisions and their social ramifications.
Historically, the U.S. has wielded significant influence over global economic policies, often using its economic clout to impose tariffs and sanctions that can destabilize other economies, particularly in developing nations. The ongoing trade tensions with China, characterized by a series of tariff hikes initiated during the Trump administration, are a prime example. These measures were ostensibly aimed at protecting American industries, but they have had far-reaching consequences, including a slowdown in Chinese economic activity, as indicated in the recent reports. The declining retail sales and investment in China are not just numbers; they reflect the real lived experiences of working-class individuals who face job insecurities and economic hardships as a result of these policies.
The dynamics of inflation and interest rates further complicate the economic landscape. The Federal Reserve's potential decisions regarding interest rate cuts are not merely technical financial maneuvers; they have profound implications for ordinary citizens. Lower interest rates can provide relief to households and small businesses by making borrowing cheaper, yet they also run the risk of exacerbating inflation. This duality particularly affects marginalized communities, which often lack the financial buffers to absorb rising costs. The economic policies that prioritize corporate interests over the needs of working people contribute to systemic inequalities that persist in our society.
Moreover, the dip in smaller U.S. stocks, as reflected in the Russell 2000 index, brings to light the vulnerabilities of small businesses in an economic climate dominated by large corporations. Small businesses are often the bedrock of local economies, providing jobs and fostering community resilience. However, when interest rates rise, these enterprises are disproportionately affected, limiting their ability to grow and compete. This phenomenon echoes historical patterns where larger entities benefit from regulatory and financial advantages that small businesses cannot access. As we navigate these economic challenges, it is vital to advocate for policies that support small and local businesses, ensuring they have equitable opportunities to thrive.
Finally, the broader implications of these economic conditions must not be overlooked. The meeting between President Trump and President Putin is poised to capture significant media attention, yet it is essential to recognize how domestic economic policies and international relations are intertwined. The global economy is not merely a backdrop; it is a complex stage where the fates of individuals are influenced by the decisions made far from their everyday lives. As we engage in discussions about economic policies, we must connect these developments to larger social justice movements that advocate for fair labor practices, equitable taxation, and comprehensive support for marginalized communities. By understanding the historical context and current economic landscape, we can better equip ourselves to address the challenges that lie ahead and foster a more equitable world.
The recent report on inflation in the United States has sent ripples through global markets, notably impacting Asian stock indices as investors react to the unexpected rise in wholesale prices. In the context of an economy already feeling the strain from ongoing trade tensions and tariffs, this inflationary pressure highlights the precarious balance that policymakers must navigate. The situation serves as a reminder of the interconnectedness of global economies, particularly in a time when the repercussions of decisions made in Washington reverberate across continents. As Americans, it is crucial to understand the implications of these economic developments, not just within our borders but also in the broader context of global equity and justice.
Historically, inflation has been both a symptom and a cause of economic instability. The post-World War II era saw the U.S. grapple with high inflation rates, prompting measures like the Volcker Shock in the late 1970s and early 1980s, which raised interest rates to combat rampant inflation but also led to significant economic hardship. The current inflationary trends, especially at the wholesale level, suggest a similar potential for economic dislocation. The rise in prices, as reported, reflects not just market dynamics but also the effects of policies such as tariffs, which disproportionately affect low-income consumers and small businesses. This scenario calls for a reevaluation of our economic priorities, especially as we consider the impact of such inflation on vulnerable populations.
As citizens of a democracy, we must engage with these economic realities through informed action. Advocacy for policies that prioritize the welfare of everyday Americans is essential. This includes supporting measures that address wage stagnation, promote fair trade practices, and invest in sustainable economic growth. Moreover, we can push for greater accountability from our leaders to ensure that fiscal and monetary policies do not disproportionately favor large corporations at the expense of small businesses and workers. Grassroots movements, town hall meetings, and community discussions are avenues through which we can voice our concerns and push for a more equitable economic framework.
Education is another critical component in navigating these economic complexities. Understanding the intricacies of monetary policy, inflation, and global trade dynamics empowers individuals to make informed decisions, both as consumers and voters. Initiatives that promote financial literacy can bridge the gap between complex economic concepts and everyday experiences. By fostering a well-informed populace, we can cultivate a generation capable of holding policymakers accountable and advocating for a fairer distribution of wealth and resources.
Finally, as we witness the ongoing fluctuations in stock markets and the potential for further economic turmoil, it is vital to recognize the power of collective action. The current economic landscape is not an isolated event but part of a larger narrative that requires our engagement. Whether through supporting local businesses, participating in community organizing, or advocating for systemic change, each action contributes to a broader movement toward economic justice. In this way, we can transform our understanding of economic phenomena into a force for positive change, reinforcing the idea that a fairer economy is not just possible, but within our reach.
Analyzing the article through a critical lens reveals various areas where proactive measures can be taken to address economic concerns and advocate for a more equitable financial system. Here’s a detailed list of ideas and actions that can be pursued:
### What Can We Personally Do About This?
1. **Educate Ourselves and Others**: Understanding the complexities of inflation, tariffs, and their impact on local economies is crucial. Organize or participate in community discussions or workshops to raise awareness.
2. **Support Local Businesses**: By prioritizing local over multinational corporations, we can help stimulate our local economies and reduce reliance on volatile global markets.
3. **Get Involved in Advocacy**: Engage in advocacy for policies that promote fair trade practices and oppose excessive tariffs that harm working families and small businesses.
4. **Promote Financial Literacy**: Work with community organizations to develop programs that teach financial literacy, focusing on budgeting, investing, and understanding economic principles.
5. **Support Policy Changes**: Advocate for policies that address income inequality, such as increased minimum wage, universal healthcare, and affordable housing.
### What Exact Actions Can We Personally Take?
1. **Sign Petitions**: - **“Fight for Fair Trade” Campaign**: Visit websites like Change.org or MoveOn.org to find petitions advocating for fair trade practices. Search for petitions specifically targeting U.S. tariffs that negatively impact consumers and small businesses. - Example: [Fair Trade Campaign](https://www.change.org/p/fair-trade-reform)
2. **Write to Elected Officials**: - **Contacting Congress**: Reach out to your congressional representatives to express concerns about economic policies. Use the following template to structure your message:
**Template for Writing**: ``` Subject: Urgent Action Needed on Economic Policy
Dear [Representative's Name],
I am writing to express my concern regarding the recent inflation trends and the impact of U.S. tariffs on our economy. The rise in wholesale prices is affecting consumers and small businesses alike. I urge you to advocate for fair trade policies that protect American jobs and promote economic growth without burdening families with inflated costs.
Thank you for your attention to this important matter.
Sincerely, [Your Name] [Your Address] [Your Email] ```
- **Who to Contact**: Find your representative's contact information at [House.gov](https://www.house.gov/) or [Senate.gov](https://www.senate.gov/).
3. **Engage with Local Organizations**: - Join or support local organizations that focus on economic justice, such as the Economic Policy Institute or local grassroots movements. Participate in their campaigns and events that aim to influence local and national policies.
4. **Participate in Public Forums and Town Halls**: - Attend town hall meetings to express concerns about economic policies and their impacts on your community. This is an opportunity to ask questions and hold elected officials accountable.
5. **Connect with Advocacy Groups**: - Engage with groups like Public Citizen or the Economic Policy Institute. These organizations often have campaigns and actions that you can join to amplify your voice on economic issues.
### Mailing Addresses and Contact Information
- **Sample Elected Official Contact**: - **Senator Elizabeth Warren** 2400 JFK Federal Building 15 New Sudbury Street Boston, MA 02203 Email: [warren.senate.gov/contact](https://www.warren.senate.gov/contact)
- **Local Advocacy Organizations**: - **Economic Policy Institute** 1225 Eye Street NW, Suite 600 Washington, DC 20005 Email: [epi.org/contact](https://www.epi.org/contact/)
By taking these actions, individuals can contribute to a broader movement that seeks to create a fairer economy, challenge harmful economic policies, and support communities affected by inflation and trade practices. Engaging in these activities can foster a more informed and active citizenry, ultimately leading to meaningful change.