Asian markets closed the week with a combination of optimism and caution, as investors balanced positive economic data from China and Japan against concerns over global interest rates and energy prices. Trading volumes remained steady, with regional currencies showing resilience despite volatility in international markets.
China signals stabilisation
In China, key economic indicators pointed to stabilisation after months of uneven recovery. Industrial output and retail sales grew modestly, giving investors confidence that government stimulus measures are beginning to take effect. The Shanghai Composite Index rose slightly over the week, although lingering property sector risks kept gains in check.
Japan benefits from export strength
Japan’s Nikkei 225 advanced, supported by a weaker yen that boosted exporters and technology stocks. Automakers and electronics firms posted notable gains, reflecting steady overseas demand. Analysts noted, however, that inflationary pressures and questions over the Bank of Japan’s monetary policy remain potential headwinds in the coming months.
Southeast Asia stays resilient
Markets in Singapore, Malaysia, and Indonesia traded within narrow ranges, demonstrating resilience despite external pressures. Investors welcomed stable commodity prices, particularly in palm oil and energy, which underpin many of the region’s economies. Foreign capital inflows into Vietnam and Thailand also provided support.
India posts strong momentum
India’s Sensex closed the week higher, driven by strong corporate earnings in the banking and IT sectors. Investor sentiment was lifted further by steady foreign investment flows and government commitments to infrastructure spending. Analysts see India as a bright spot in Asia, maintaining robust growth momentum relative to other emerging markets.
Outlook remains cautious
Despite gains in several markets, uncertainty over U.S. Federal Reserve policy and energy price fluctuations tempered investor enthusiasm. Regional currencies, including the Korean won and Philippine peso, faced pressure against the dollar, reflecting the broader global environment. As the week closed, analysts stressed that while Asia remains a growth engine, risks from external shocks will continue to shape sentiment.
Newshub Editorial in Asia – 28 September 2025
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