A steady but restrained start across the region
Asian markets opened Monday with cautious gains, supported by renewed expectations of a possible US Federal Reserve rate cut in December but tempered by uneven sector performance and lingering regional uncertainties. Trading volumes were lighter than usual with Japan closed for a public holiday, leaving other major centres to set the early tone for the session.
Hong Kong leads early advances
The Hang Seng Index opened firmly higher, rising by around 1.3% as technology and consumer stocks attracted renewed interest. Investors responded positively to the improved global sentiment following comments from US Federal Reserve officials suggesting that borrowing costs may soon begin to ease. The market also benefited from selective bargain-hunting after recent volatility.
Mainland China remains subdued
In contrast, the Shanghai Composite Index opened slightly lower, slipping near 0.3%. Semiconductor and hardware-linked stocks weakened at the open, reflecting ongoing investor caution around geopolitical tensions and export-control pressures. Markets in China remain sensitive to policy signals, and traders continued to look for clearer indications of additional domestic stimulus.
Solid gains in Australia and mixed moves elsewhere
Australia’s ASX 200 opened up by roughly 1.1%, driven by financials and energy names as broader risk appetite improved. South Korea and Taiwan saw more modest upticks, with both markets responding to the global improvement but lacking strong domestic catalysts in early trading.
Japan’s absence from the session due to a public holiday contributed to softer regional liquidity, dampening the potential for broader momentum across Asia.
Rate-cut expectations lift sentiment
Much of the early market confidence stemmed from repeated suggestions by US policymakers that interest rates may be lowered “in the near term,” prompting traders to price in a meaningful probability of action at the Fed’s December meeting. The prospect of looser global financial conditions has been a significant support for risk assets, particularly in Asia’s growth-focused markets.
Still, the optimism remains fragile. Investors are monitoring several risk factors, including currency fluctuations, the weakness of the Japanese yen, geopolitical instability, and the continued uncertainty surrounding the global technology supply chain.
Outlook for the trading day
With gains spread unevenly across the region, sentiment is positive but far from exuberant. Investors will look toward upcoming US economic indicators and any fresh policy signals from Beijing for guidance on the remainder of the week. The early trajectory suggests potential for further upside, provided external conditions remain supportive.
Newshub Editorial in Asia – 24 November 2025
Recent Comments