Asian markets opened Tuesday on a mixed footing, with investors balancing cautious optimism over moderating inflation against uncertainty surrounding upcoming central bank decisions in the United States and the wider region. Early trading showed uneven momentum across major indices, reflecting divergent domestic factors and shifting expectations for global monetary policy.
Japan edges higher amid tech resilience
Tokyo’s Nikkei 225 opened slightly higher, supported by gains in semiconductor and robotics stocks. Investors responded positively to signs of stabilising global chip demand, which provided a tailwind for Japan’s heavyweight technology exporters. However, broader market advances were restrained as traders looked ahead to forthcoming guidance from the Bank of Japan, where debate continues over the pace and timing of policy normalisation. The yen remained relatively steady, offering additional support to export-oriented sectors.
Hong Kong and mainland China show cautious sentiment
Hong Kong’s Hang Seng Index opened marginally lower, with property developers and consumer-facing companies under pressure. Sentiment in the region remained cautious as markets continued to assess China’s latest economic data releases, which pointed to modest improvements in industrial output but ongoing weakness in consumer spending. On the mainland, the Shanghai Composite opened flat, reflecting subdued investor appetite despite targeted government measures aimed at strengthening credit flows and supporting small businesses.
South Korea and Australia diverge
South Korea’s Kospi benefited from renewed interest in its major technology and automotive firms, opening higher as foreign investors returned to selective buying. Positive export figures released earlier in the week added momentum. By contrast, Australia’s ASX 200 opened slightly lower, weighed down by declines in mining and energy stocks as commodity prices softened. Markets in Sydney remained sensitive to the trajectory of Chinese demand, particularly for industrial metals, and to expectations of the Reserve Bank of Australia’s policy direction.
Regional outlook shaped by global policy expectations
Across the region, traders remained focused on signals from the US Federal Reserve, whose forthcoming decisions on interest rates continue to influence global capital flows. While easing inflation in several Asian economies has supported a more constructive outlook, investors remain wary of volatility stemming from geopolitical developments and fluctuating risk sentiment. Market analysts expect trading to remain measured throughout the day as participants await additional economic indicators later in the week.
Newshub Editorial in Asia – 9 December 2025
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