Asian equities opened Monday on a mixed note as investors weighed cautious optimism about US economic resilience against renewed political uncertainty ahead of the presidential election. Major indices across the region reflected divergent trends, with traders balancing strong corporate earnings against weaker Chinese factory data and geopolitical risks in the Middle East.
Tokyo and Seoul lead regional gains
Japan’s Nikkei 225 rose 0.6 per cent in early trading, extending last week’s rally driven by a weaker yen and strong corporate results from technology and automotive firms. In South Korea, the Kospi gained 0.4 per cent, lifted by semiconductor and battery manufacturers following upbeat export figures for October. Analysts said global demand for advanced chips and green technologies continued to underpin regional growth.
China and Hong Kong struggle for momentum
In contrast, China’s markets opened softer. The Shanghai Composite edged down 0.3 per cent after weekend data showed manufacturing activity contracted for a second straight month. The Hang Seng in Hong Kong slipped 0.5 per cent, weighed by declines in property and consumer sectors. Investors remained concerned about the lack of significant policy stimulus despite government pledges to support domestic demand.
Currencies and commodities steady
The US dollar held steady against most Asian currencies, trading near 151 yen, while the Chinese yuan remained under mild pressure. Oil prices were little changed after last week’s rebound, with Brent crude hovering around $86 a barrel amid Middle East tensions and reduced supply forecasts. Gold was slightly higher, reflecting cautious investor sentiment.
Outlook for the week
Analysts expect trading to stay range-bound as markets await key US inflation data later in the week and fresh guidance from the Federal Reserve. Regional investors are also monitoring developments in Washington and Beijing, where trade and technology policies could shape risk appetite heading into year-end.
Newshub Editorial in Asia – 3 November 2025
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