Asian markets opened on a firm note on Wednesday, lifted by renewed optimism around global trade talks and robust earnings results from major US technology firms. Gains were seen across Tokyo, Seoul, Shanghai, and Hong Kong as sentiment improved following a series of positive economic signals and easing tariff concerns.
Japan leads with tech and tariff relief
Japanese equities led regional gains, with the Nikkei 225 jumping nearly 2% in early trading. The broader Topix index hit an all-time high, boosted by strong earnings from domestic electronics firms and news of a new trade agreement with the US that reduced planned tariffs on industrial goods. Investors reacted positively to signs that major economies are moving to de-escalate trade tensions, which had weighed on export-oriented sectors in previous quarters.
China and Hong Kong supported by trade flows
Chinese markets also moved higher, with the Shanghai Composite rising 0.4% and the Hang Seng in Hong Kong up by a similar margin. Investors are growing more confident in a rebound in global demand, with recent trade data suggesting a gradual recovery in export orders. There are also reports that Beijing may further ease lending conditions to support domestic industry, particularly in green energy and manufacturing.
South Korea lifted by chip stocks and GDP data
South Korea’s Kospi index gained 0.9%, driven by a rally in semiconductor shares. SK Hynix and Samsung Electronics both rose after analysts upgraded their earnings forecasts for the third quarter. In addition, new GDP figures showed that the South Korean economy grew by 0.6% in the second quarter, slightly above expectations and a sign of resilience in the face of external headwinds.
India flat as IT shares drag
Indian markets opened marginally lower, with the Nifty and Sensex each dipping by around 0.1%. While optimism surrounding a pending free trade deal with the United Kingdom buoyed overall sentiment, the technology sector came under pressure after several firms reported disappointing guidance. Shares of major IT services companies such as Infosys and Wipro declined, reflecting cautious investor outlook in the sector.
Australian dollar gains, ASX drifts
In Australia, the S&P/ASX 200 opened slightly lower despite earlier gains in global markets. Weakness in mining and energy stocks dragged on performance, although financials remained stable. The Australian dollar, however, climbed to its highest level in over eight months against the US dollar, buoyed by rising risk appetite and improving commodity prices.
Outlook remains cautiously optimistic
Investor sentiment across Asia is broadly positive, with expectations that further trade agreements between the US and key Asian partners could bolster confidence and capital flows. The technology sector, in particular, is emerging as a beneficiary of improved global outlooks and consumer demand. Attention now turns to macroeconomic releases later in the week, including inflation data from Japan and manufacturing surveys from China, which could influence the regional trajectory in the short term.
REFH – Newshub, 24 July 2025
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