Asian equity markets began the week on a positive note on Monday, 11 August 2025, with investor sentiment buoyed by expectations of progress in US–China trade talks and a boost from robust corporate earnings. However, caution prevailed as traders awaited key US inflation data later this week.
Gains across major indices
Hong Kong’s Hang Seng Index opened up around 0.2%, while mainland China’s Shanghai Composite rose roughly 0.5%. In India, the Nifty50 climbed 0.15% to trade near 24,398, and the BSE Sensex advanced to just under 79,930 points. Australia’s S&P/ASX 200 index reached a record high, driven by strong performances in the mining and banking sectors.
Tech sector strength supports sentiment
Much of the upward momentum came from solid earnings reports, particularly in the technology sector, which provided a counterbalance to broader concerns over global economic headwinds. Market participants also positioned themselves ahead of the release of US inflation figures that could influence the Federal Reserve’s next interest rate decision.
Geopolitical risks temper optimism
Despite the gains, traders remained mindful of the looming deadline for the expiry of the current US–China tariff truce. While hopes remain for a renewed agreement, uncertainty over trade relations continued to weigh on overall market confidence. Geopolitical tensions elsewhere in Asia also encouraged a degree of risk aversion.
Tokyo closed, futures near record
Japan’s Tokyo Stock Exchange was closed for the Mountain Day holiday, but Nikkei futures traded higher, approaching record levels. This suggests that Japanese equities could see a strong start when trading resumes on Tuesday.
Outlook for the week
Investors are likely to keep a close watch on upcoming macroeconomic data and developments in trade negotiations. The US consumer price index report, due later this week, could set the tone for global equity markets, particularly if it alters expectations around monetary policy in Washington. Any breakthrough—or setback—in US–China discussions will also be a key driver for Asian market performance in the coming days.
REFH – Newshub, 11 August 2025
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