Asian and Australian markets opened on Wednesday with broad gains, taking their cue from Wall Street’s record run and renewed expectations of interest rate cuts in the United States. Investors are balancing optimism with caution as trade tensions and regional uncertainties linger.
Asia’s upbeat start
Japan’s Nikkei 225 opened 0.5 % higher, continuing its strong momentum as technology and export-focused shares advanced. South Korea’s Kospi recorded the sharpest rise in the region, climbing 1.3 %, driven by chipmakers and industrial firms. Hong Kong’s Hang Seng Index rose 0.7 %, reflecting improving investor sentiment despite ongoing property sector headwinds.
In mainland China, the Shanghai Composite traded almost flat at the open, signalling that confidence remains fragile amid a patchy economic recovery and continued uncertainty around government stimulus measures.
Australia’s modest lift
The ASX 200 edged up 0.2 % in early trade, supported by gains in the mining and financial sectors. However, investors kept a cautious eye on commodity prices and global growth prospects. The Australian dollar held steady, reflecting muted foreign-exchange volatility at the start of the session.
Global cues and outlook
The upward movement across Asian and Australian markets comes on the back of fresh record highs in U.S. indices. Softer-than-expected labour market data in the U.S. has bolstered expectations that the Federal Reserve could cut rates in the coming months, fuelling appetite for risk assets.
Still, market participants remain alert to potential disruptions, including renewed trade friction between Washington and Beijing, and the impact of slowing global demand on export-driven economies in the region.
Investor sentiment
Overall, Wednesday’s opening highlighted cautious optimism. While the positive momentum from Wall Street lifted most indices, the divergence between stronger markets like Tokyo and Seoul and a flat performance in Shanghai underscores the uneven nature of the recovery. For Australia, early gains signal confidence but also a watchful stance on global developments.
REFH – Newshub, 10 September 2025
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