Asian markets opened Friday on a cautious note, with major indices slipping as investors reacted to mounting concerns over potential credit losses among US regional banks and a broader risk-off sentiment spreading across global markets.
Weak start across major exchanges
Japan’s Nikkei 225 fell by around 1.3 % at the opening bell, weighed down by declines in financial and industrial stocks, while Hong Kong’s Hang Seng slipped by nearly 1 %, dragged by losses in technology and property shares. South Korea’s Kospi also retreated, following a sharp overnight drop in semiconductor stocks on Wall Street.
Regional sentiment turns defensive
Investor appetite across Asia was subdued after a string of reports from the US indicated growing stress in mid-sized banks. Financial shares led declines in Tokyo, Seoul and Sydney as traders reassessed exposure to global credit risk. Meanwhile, the Chinese mainland markets remained relatively stable, supported by government buying in state-linked funds and modest optimism over potential stimulus in the infrastructure sector.
Currencies and commodities under pressure
The Japanese yen strengthened slightly against the dollar as risk aversion boosted demand for safe-haven assets, while the Indian rupee and South Korean won both eased in early trading. Oil prices fell marginally, reflecting fears of slower global growth, while gold inched higher as investors sought safety.
Outlook remains cautious
Analysts expect volatility to persist through the day as markets await key economic data from the US later this week, including updates on retail sales and consumer sentiment. With expectations of delayed interest-rate cuts now fading, Asian traders are bracing for continued short-term turbulence.
Newshub Editorial in Asia – 17 October 2025
Recent Comments