Cautious gains define the mid-week open
Asian markets opened with modest gains on Wednesday as investors assessed fresh inflation indicators, shifting currency dynamics and expectations of coordinated policy moves from major central banks. The tone across the region was generally constructive, though the pace of buying remained measured amid lingering concerns about global demand and geopolitical tension. Traders focused on macro signals from the United States and China, along with energy-price volatility that continues to steer risk appetite.
Tokyo pushes higher despite yen pressure
Japan’s markets opened firmer, with the Nikkei 225 advancing on the back of strong performances in technology and industrial shares. The yen weakened slightly in early trading, offering support to exporters but heightening expectations that the Bank of Japan may face renewed scrutiny over its yield-curve stance. Investors remained attentive to wage negotiation updates ahead of next month’s data releases, which could influence the timing of any future policy adjustments.
China’s markets mixed as policymakers signal targeted support
Mainland Chinese equities posted a softer start, with the Shanghai Composite edging slightly lower while Shenzhen-listed technology stocks showed early resilience. Traders reacted to new signals from Beijing suggesting that additional targeted measures may be introduced to support domestic consumption and stabilise the property market. Foreign institutional inflows continued on a cautious trend, reflecting a preference for defensive sectors such as healthcare and consumer staples.
Hong Kong’s Hang Seng Index moved higher in early trade, lifted by gains in financials and telecommunications. Sentiment improved after reports of improved liquidity conditions and signs that corporate earnings may be stabilising after a prolonged downturn.
South Korea and Taiwan gain on semiconductor optimism
Both the Kospi and the Taiex opened stronger, with semiconductor and hardware manufacturers leading early advances. Investors continued to price in improved global demand for high-end chips, supported by the accelerating rollout of AI-driven technologies. Market participants also reacted to indications that supply-chain bottlenecks in key microelectronics components are easing, providing a tailwind for export-driven economies.
Australia and Southeast Asia follow global cues
The ASX 200 opened marginally higher, supported by energy and mining stocks amid firm commodity prices. Investors awaited further clarity on China’s industrial demand outlook, a critical factor for Australia’s resource-heavy market. Financials showed mild gains as sentiment improved ahead of upcoming earnings updates.
Across Southeast Asia, markets saw a mixed but stable start. Singapore’s STI hovered slightly above the flatline, with banks showing early strength, while Indonesia and Malaysia recorded modest gains driven by consumer and infrastructure shares. Thailand’s SET remained under pressure due to currency volatility and concerns about capital outflows.
Global backdrop shapes the trading day ahead
The broader environment for Asian markets remains one of cautious optimism. Declining U.S. bond yields, expectations of steady Federal Reserve policy and tentative signs of stabilisation in global manufacturing have contributed to a more supportive backdrop for risk assets. However, geopolitical risks, fluctuating commodity prices and uneven economic recovery across key economies continue to temper momentum.
With investors awaiting further economic data releases later in the week—including manufacturing surveys from China and inflation updates from Japan and South Korea—regional markets are expected to maintain a careful, data-driven stance.
Newshub Editorial in Asia – 26 November 2025
Recent Comments