Asian equities opened Monday with a cautious upward tilt as investors assessed mixed signals from the United States, shifting expectations for central bank policy, and a fresh round of regional economic data. Early trading saw modest gains across major indices, with markets balancing optimism over cooling global inflation against concerns about slowing demand and geopolitical uncertainty.
Japan and South Korea lead early momentum
Tokyo’s Nikkei 225 began the session in positive territory, supported by sustained yen weakness that continued to bolster exporters. Investors also reacted to improving corporate earnings guidance in the automotive and semiconductor sectors, which helped offset worries about wage-driven inflationary pressure. In Seoul, the Kospi advanced slightly as technology shares recovered from last week’s sell-off, reflecting renewed appetite for chipmakers and display manufacturers after improved forward-looking demand forecasts.
China’s markets remain subdued despite policy support
Mainland Chinese equities opened mixed, with the Shanghai Composite hovering near the flat line and the Shenzhen market showing a softer tone. Investors are waiting for clearer evidence that recent stimulus measures can generate a sustainable recovery in domestic consumption and property-related activity. Hong Kong’s Hang Seng also saw muted moves, weighed down by ongoing weakness in real estate and uncertainty around regulatory signals. The broader sentiment continues to hinge on whether Beijing’s targeted interventions will translate into stabilised growth through the first quarter of 2026.
Southeast Asia sees selective gains amid currency pressures
Markets across Southeast Asia showed a more uneven pattern. Singapore’s STI opened marginally higher, while Thailand and Malaysia saw steadier flows into banking and consumer sectors. However, regional currencies remained under pressure as investors continued to price in shifts in US Federal Reserve policy expectations. The combination of weaker currencies and imported inflation remains a challenge for policymakers, who are navigating a balancing act between growth and price stability.
Commodities and rates shape investor outlook
Oil prices steadied after last week’s volatility, giving energy-importing nations some relief as markets assessed global supply forecasts and Middle Eastern geopolitical risks. Meanwhile, bond yields across Asia displayed limited movement in the early session, with investors waiting for US macroeconomic data later in the week that may influence rate-cut expectations. The cautious stance reflects a market sensitive to any signs of divergence between Asian central banks and the Federal Reserve.
Newshub Editorial in Asia – 2025-12-01
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