06:46 AM EDT, 08/04/2025 (MT Newswires) -- Asian stock markets largely tracked higher Monday, lifted by the prospect of softer global interest rates after a weak US jobs report on Friday increased the odds for US rate cuts in the second half of 2025.

Hong Kong and Shanghai finished in the green, while Tokyo fell back. Other regional exchanges were also mixed on the high side.

In Japan, the Nikkei 225 finished off 1.2% on Wall Street cues and concerns that the US economy and export market were slowing. A stronger yen pressured export issues.

The benchmark Nikkei 225 fell 508.90 to 40,290.70, as losing issues outnumbered gainers 174 to 48.

Leading the upside was game maker Nintendo, up 5.1% while music and audio equipment company Yamaha declined 8%, with both moves following earnings reports.

In Hong Kong, the Hang Seng Index opened lower but rose to the close, finishing up 0.9% as traders banked on hopes of monetary easing from the Federal Reserve after the soft US jobs report on Friday.

Easing by the US central bank could also allow parallel action from the People's Bank of China, which maintains interest rate regimens in part to stabilize the yuan-US dollar exchange rate, and also to limit capital flight.

The broad gauge Hang Seng rose 225.64 to 24,733.45 as gaining issues outnumbered losers 58 to 25. The Hang Seng TECH Index gained 1.5% on the day, while the Mainland Properties Index rose 1%.

Leading the upside was New Oriental Education & Technology, gaining 6.5%, while Xinyi Glass declined 3.8%.

On the mainland, the Shanghai Composite rose 0.7% to 3,583.31.

On the other regional exchanges, the S. Korean KOSPI rose 0.9%; the Taiwan TWSE declined 0.2%; the Australian ASX 200 was steady; the Singapore Straits Times Index rose 1%, and the Thai Set advanced 0.9%. In late trading in Mumbai, the Sensex was up 0.6%.

In other news, the ASEAN manufacturing purchasing managers index (PMI) posted at 50.1 in July, edging up from 48.6 in June, and striking marginally above the 50-mark that separates growth from contraction, reported S&P Global, citing its monthly surveys of the region.