Asian stock markets opened with a mixed performance on Wednesday, as investors weighed upcoming US inflation data and fresh indicators from China’s sputtering economy. Caution prevailed across the region, with trading volumes subdued and risk appetite tempered by global uncertainty.
Tokyo slips as yen strengthens
Japan’s Nikkei 225 fell 0.4% in early trading, dragged down by exporters following a slight strengthening of the yen against the dollar. Investors were also reacting to a modest decline on Wall Street overnight, with tech stocks leading the losses.
The Bank of Japan’s ongoing efforts to manage bond yields have created volatility in currency markets, and traders remain alert for any sign of policy shifts. Financials and industrials led the losses in Tokyo, although consumer-focused stocks offered some support.
Shanghai and Shenzhen edge up cautiously
Mainland Chinese equities opened slightly higher, with the Shanghai Composite up 0.2% and the Shenzhen Component gaining 0.3%. The uptick followed muted optimism after reports that Beijing is considering further fiscal measures to stimulate growth in the second half of the year.
However, investors remain sceptical about the strength of China’s recovery. Data due later this week on trade and inflation will be closely watched for clues on domestic demand and producer price pressures. Property developers saw minor gains following speculation of additional support measures, while tech stocks were flat.
Hong Kong recovers early losses
The Hang Seng Index opened lower but reversed course, rising 0.3% in morning trade. Gains were led by heavyweight tech firms, including Tencent and Alibaba, which rebounded from recent weakness. However, sentiment remains fragile amid ongoing concerns about regulatory pressure and weak earnings forecasts.
Foreign investor flows have been inconsistent in recent sessions, as traders weigh China’s uneven economic performance against relatively attractive valuations in Hong Kong-listed stocks.
South Korea flat as chip stocks consolidate
South Korea’s Kospi was largely unchanged, fluctuating around the flatline in early trade. Gains in energy and financial shares were offset by profit-taking in major chipmakers following a strong run. With Samsung Electronics and SK Hynix under close watch, investors are awaiting guidance from global peers and US tech earnings later this week.
The won traded in a narrow range against the dollar, as investors awaited US CPI data for July, scheduled for release Thursday.
Australia and Southeast Asia are broadly weaker
Australia’s ASX 200 dipped 0.2% at the open, with miners and banks leading declines. The market is under pressure from falling iron ore prices and subdued global demand signals. Investors were also positioning ahead of key domestic earnings reports and economic data due later in the week.
Elsewhere, Southeast Asian markets were broadly weaker, with benchmarks in Singapore and Jakarta edging lower. Thailand’s SET Index saw modest gains, supported by tourism-related stocks amid improving travel trends.
REFH – Newshub, 7 August 2025
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