Asian equities opened the week with a positive tone on Monday, while Australian shares edged lower as banking and energy stocks came under pressure despite strength in gold miners. The session reflected the contrasting investor sentiment across the region, with optimism in Japan and China offset by cautious trading in Sydney.
Japanese markets surge after political shift
Tokyo’s Nikkei 225 index jumped by around 1.4 per cent, supported by a weaker yen and investor optimism following the resignation of Prime Minister Shigeru Ishiba. The development was interpreted as a potential step toward political stability, lifting confidence in export-oriented sectors. Technology and automotive stocks led the gains, underscoring Japan’s role as a key driver of Asian equities at the start of the week.
China and Hong Kong follow positive trajectory
Mainland Chinese markets opened higher, with the Shanghai Composite up about 0.2 per cent, while Hong Kong’s Hang Seng index advanced by 0.3 per cent. The gains were modest but pointed to improving sentiment, buoyed by fresh trade data that signalled steady export activity. While concerns remain over structural growth challenges, the opening suggested investors were willing to add risk as Beijing continues to fine-tune economic support measures.
South Korea maintains steady gains
In Seoul, the Kospi rose by 0.2 per cent and the Kosdaq gained a similar margin, reflecting balanced investor flows across both blue-chip and smaller technology-focused companies. Market participants highlighted that South Korea continues to benefit from resilient semiconductor demand, even as global supply chain uncertainties linger.
Australia lags behind regional peers
By contrast, Australia’s S&P/ASX 200 opened weaker, falling 0.3 per cent to 8,849 points. The decline was driven by banking and energy stocks, which overshadowed strength in gold producers. Gold miners extended gains to fresh records, supported by elevated global bullion prices, but this was insufficient to offset broad-based weakness in financials and materials. The cautious start reflected concerns over global commodity demand and the potential drag on Australia’s resource-heavy economy.
Outlook for the trading week
The mixed regional performance underscored ongoing investor uncertainty as markets adjust to shifting global conditions. Rising oil prices after OPEC+ supply restrictions, political changes in Japan, and persistent questions about China’s growth trajectory are expected to dominate sentiment in the coming days. Traders will also monitor upcoming US inflation data and central bank guidance, which could set the tone for both Asian and Australian equities through the remainder of the week.
Newshub, 8 September 2025
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