Asian stocks collectively declined on Tuesday, August 26, 2025, influenced by the drop in U.S. stocks on Wall Street, which erased part of the significant gains made last week amid growing hopes that the U.S. Federal Reserve would cut interest rates next month. The Nikkei 225 index in Japan fell 1.1% to 42,342.28 points in morning trading. Australia’s S&P/ASX 200 index dropped 0.3% to 8,949.40 points. South Korea’s KOSPI index decreased by 0.8% to 3,184.70 points despite improved consumer confidence, reinforcing expectations that the central bank will keep interest rates unchanged. Hong Kong’s Hang Seng index declined 0.2% to 25,766.68 points, and China’s Shanghai Composite index fell 0.1% to 3,878.24 points. On Wall Street, U.S. stocks closed lower on Monday, with the S&P 500 down 0.4% to 6,439.32 points, still near its all-time high. The Dow Jones Industrial Average dropped 0.8% to 45,282.47 points after reaching a record high last Friday. The Nasdaq Composite fell 0.2% to 21,449.29 points.

In energy markets, the U.S. West Texas Intermediate crude price dropped 32 cents to $64.48 per barrel, and Brent crude fell 28 cents to $68.52 per barrel. In currency markets, the U.S. dollar weakened against the Japanese yen to 147.31 yen from 147.71 yen, while the euro rose to $1.1644 from $1.1623.