Asian markets opened lower on Wednesday, 20 August, following overnight losses in U.S. technology shares and weak export data from Japan. Concerns over global growth, rising geopolitical tensions, and anticipation ahead of the U.S. Federal Reserve’s Jackson Hole symposium added to the cautious tone.
Japan hit by weak exports and tech slump
The Nikkei 225 dropped 1.7% in early trading as disappointing export figures weighed on investor confidence. Technology shares led the decline, with chip-related firms such as Advantest, Disco Corp. and Tokyo Electron posting sharp losses. The weaker performance underscored worries that global demand for semiconductors is losing momentum.
Taiwan and South Korea extend losses
Taiwan’s Taiex fell 2.4%, pulled down by a 3.8% drop in Taiwan Semiconductor Manufacturing Company (TSMC), which carries heavy weight on the index. In South Korea, the Kospi slipped 1.4%, pressured by losses in its technology sector and geopolitical uncertainty. North Korea’s strong reaction to joint U.S.–South Korean military drills added to investor unease.
China and Hong Kong follow trend, Australia steadies
Hong Kong and Shanghai markets recorded modest declines, while Australia’s ASX 200 managed to buck the regional trend, rising 0.2% on defensive buying. Broader measures also pointed to risk-off sentiment, with the MSCI Asia-Pacific ex-Japan index falling more than 1%.
India starts cautiously but stages rebound
Indian equities opened tepidly, with the Nifty 50 slipping 0.06% to 24,965.8 and the Sensex edging up just 0.03% to 81,671.47. Banking shares weighed initially, but a rebound in technology stocks helped lift sentiment. The Sensex later advanced by over 100 points and the Nifty regained the 25,000 level, supported by gains in IT names.
Global drivers and investor focus
The sell-off in Asia followed declines in U.S. markets, where technology shares came under pressure amid concerns about government intervention in the semiconductor sector. Investors are also positioning ahead of the Jackson Hole symposium, where Federal Reserve Chair Jerome Powell is expected to give fresh guidance on interest rates. Markets are currently pricing in a 25-basis-point cut in September, though uncertainty remains over the inflation outlook.
Outlook for the trading day
With tech weakness spreading across global markets and geopolitical risks elevated, Asian equities face a challenging backdrop. The direction of trade will likely hinge on U.S. policy signals later this week, while regional investors monitor earnings reports and economic data for signs of resilience.
REFH – Newshub, 20 August 2025
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