Asian stocks opened the week on a cautious note Monday, with investors assessing global economic signals, corporate earnings, and persistent concerns over interest rates and geopolitical risks. Markets across the region showed a mixed performance as traders balanced optimism over stabilising inflation against uncertainty in US and Chinese data.
Tokyo opens higher, driven by exporters
Japan’s Nikkei 225 began the session modestly higher, buoyed by gains in automotive and technology shares. A weaker yen helped exporters, while sentiment improved following reports of steady manufacturing activity. Analysts noted that Tokyo’s resilience reflects a belief that Japan’s corporate sector continues to benefit from strong global demand, despite lingering inflationary pressures.
China and Hong Kong see cautious trading
Mainland Chinese markets opened flat to slightly lower as investors awaited fresh indicators on industrial production and consumer spending. Confidence remains fragile amid concerns about the property sector and slowing growth. In Hong Kong, the Hang Seng Index traded in a narrow range, with technology and financial shares offsetting declines in real estate and consumer sectors. Market participants say momentum will depend on signals from Beijing’s next policy announcements.
Southeast Asia shows selective strength
Across Southeast Asia, trading was uneven. Singapore’s Straits Times Index edged up slightly, supported by banking shares, while markets in Jakarta and Bangkok saw limited movement as investors awaited inflation data later in the week. In South Korea, the Kospi slipped marginally as chipmakers retreated following a sharp rally earlier in October.
Cautious optimism ahead of US earnings
Regional sentiment was shaped by Wall Street’s close on Friday, where major indices ended mixed amid fluctuating bond yields. With several key US companies set to report earnings this week, investors in Asia are positioning conservatively, wary of volatility in global equity markets. Analysts expect trading volumes to remain subdued until clearer direction emerges from American and European data releases.
Outlook for the week
Overall, Monday’s start reflects a tone of guarded optimism rather than conviction. Asian investors appear focused on preserving gains from early October while navigating the interplay of global interest-rate trends and domestic economic indicators. With central banks in Japan and China under pressure to maintain supportive policy stances, the region’s market mood is one of watchful patience.
Newshub Editorial in Asia – 20 October 2025
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