Asian markets opened with a mixed performance on Monday, 18 August 2025, as Japan and China recorded gains while South Korea retreated, reflecting a cautious mood ahead of key global events.
Japan pushes higher on weaker yen
Japan’s Nikkei 225 advanced by nearly 0.9%, trading around 43,776, buoyed by a softer yen, which provided a boost to major exporters and automakers. The broader Topix index also extended last week’s momentum, adding 0.6% to reach a new high at 3,125.6. Market participants noted renewed strength in cyclical stocks, suggesting confidence in Japan’s corporate earnings outlook.
China and Hong Kong edge up
In mainland China, the Shanghai Composite gained 1.2% to close at 3,740.5, supported by buying in financial and technology shares. Hong Kong’s Hang Seng index rose by 0.3%, with energy and consumer sectors providing the strongest support. The gains reflected a gradual improvement in sentiment as investors looked beyond property sector concerns and towards signs of policy support.
South Korea under pressure
South Korea’s Kospi fell by 1.3%, dragged down by weakness in semiconductor shares and foreign investor selling. Market analysts suggested that traders remain cautious about global demand for technology exports, particularly in the context of slowing consumer spending in Western economies. The Kosdaq, South Korea’s smaller-cap index, also recorded a decline, extending the cautious tone.
Oil prices ease as geopolitical fears subside
A key driver for regional markets was the easing of oil price concerns. Diplomatic progress between Russia and Western powers over supply disruptions helped steady crude markets, providing relief to energy-importing nations in Asia. Lower oil prices supported investor confidence in India and other emerging markets, where energy costs play a critical role in inflationary trends.
Focus turns to Jackson Hole
Attention is now shifting to the annual Jackson Hole economic symposium later this week, where Federal Reserve Chair Jerome Powell is expected to outline the central bank’s stance on monetary policy. Markets are currently pricing in an 85% chance of a September rate cut, a development that could provide further support for risk assets across Asia. Traders are also watching for signals on how long the Fed intends to maintain an accommodative stance in light of moderating inflation.
Regional implications
The mixed start to the week underscores the uneven dynamics across Asian markets. Japan’s continued resilience suggests confidence in domestic growth, while China’s modest gains indicate stabilisation after months of volatility. South Korea’s decline, however, serves as a reminder that global demand uncertainties remain a headwind. For investors, the combination of oil market relief and dovish expectations from the Fed offers short-term support, but geopolitical risks and export dependency still weigh on sentiment.
REFH – Newshub, 18 August 2025
Recent Comments