Asian markets opened mostly higher on Wednesday, supported by fresh optimism in the technology sector and expectations of a dovish turn from the U.S. Federal Reserve, while Australian shares slipped on renewed inflation concerns.
Asia: tech optimism drives momentum
Tokyo led regional gains as the Nikkei 225 surged more than 1,000 points in early trading, fuelled by strong performances from chipmakers and exporters. South Korea’s KOSPI added around 1 per cent, lifted by AI-related stocks and easing U.S.–China trade tensions. Investors across Asia continued to bet that the Fed may soon begin cutting rates, a move seen as supportive for growth-oriented equities.
Australia: inflation data dampens sentiment
In contrast, Australian shares retreated after fresh inflation figures came in higher than expected, challenging the outlook for monetary easing. The S&P/ASX 200 fell close to 1 per cent, weighed down by losses in consumer and financial stocks. The Australian dollar strengthened slightly following the inflation report, signalling that the Reserve Bank may keep rates elevated for longer than anticipated.
India: steady gains across key sectors
Indian markets opened on a positive note, with the BSE Sensex and NSE Nifty 50 both advancing modestly. Gains were led by energy, commodity and banking stocks, reflecting improved global sentiment and a slowdown in foreign capital outflows. The Indian rupee held steady as investors awaited further clarity on U.S. interest-rate policy and upcoming domestic earnings results.
Regional outlook
Market momentum across Asia remains fragile, with attention turning to upcoming central-bank meetings and corporate earnings. The divergence between Australia’s inflation-driven caution and the broader regional rally highlights the varying pace of post-pandemic economic adjustment.
Newshub Editorial in Asia – 29 October 2025
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