Asian and Australian markets opened on Wednesday with a mixed performance, as investors balanced optimism over potential US monetary easing with persistent concerns about Chinese demand and commodity weakness. The cautious start reflected a global mood of anticipation ahead of key US economic data and Federal Reserve guidance.
Asia shows selective strength
Japan’s Nikkei 225 edged higher, supported by gains in technology and automobile shares, while Hong Kong’s Hang Seng Index rose by more than 1%, lifted by investor expectations of future US rate cuts. In mainland China, markets opened flat, with property sector weakness and slowing domestic demand continuing to weigh on sentiment. South Korea’s Kospi remained subdued, highlighting broader concerns about global growth prospects and supply chain resilience.
Australian shares under pressure
The S&P/ASX 200 opened lower, dragged down by sharp losses in mining and energy stocks. Iron ore and metals producers retreated as Chinese demand signals remained soft, while energy companies tracked weaker global oil prices. Banking shares provided little support, trading largely flat in early deals. The heavy reliance of Australian equities on commodity cycles once again highlighted their vulnerability to external headwinds.
Drivers shaping sentiment
Global monetary policy remains the dominant factor for regional markets. Traders are closely watching for indications that the Federal Reserve may begin easing policy, a move that would support risk appetite across Asia-Pacific. At the same time, uncertainty over China’s economic trajectory is limiting gains, particularly for export-driven economies such as Australia. Currency fluctuations and inflation data are also shaping short-term positioning among investors.
Outlook for the week
Attention now shifts to US inflation figures and central bank commentary later this week, which are expected to provide clearer signals for global markets. In Asia, domestic earnings updates and policy announcements from Beijing could offer additional direction. For Australia, commodity price trends and inflation data will be decisive in determining whether the ASX 200 can regain momentum after its weak start to midweek trading.
Newshub Editorial, 17 September 2025
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