The Asia-Pacific markets opened on Friday in a cautious tone, with major indices sliding as investors digested weak export data and persistent policy uncertainty in the US.
Market performance & sector drivers
Markets in Japan and South Korea were among the hardest hit. The Nikkei 225 fell more than 2% early, while the KOSPI shed around 2.2%. WRAL.com+2The Times of India+2 In Hong Kong, the Hang Seng Index dropped over 0.9% as tech and export-linked names came under pressure. WRAL.com+1 The Indian market, however, showed a less severe drop, with the SENSEX down around 0.2-0.3% and some mid-cap segments attempting a mild recovery. Business Standard
What’s weighing on sentiment
Several factors are driving the mood:
- Weak export data from China, where exports fell 1.1% in October and shipments to the US plunged 25% year-on-year. AP News+1
- Renewed caution over valuations of technology and AI-linked stocks, which have led to what some analysts describe as the steepest draw-down in several months. Reuters+1
- Uncertainty over monetary policy in the US and whether further rate cuts are likely, creating ambiguity for risk assets globally. The Business Times+1
Regional variation & flickers of resilience
Despite the broad softness, not all the region is uniformly weak. For example, in Indonesia the Jakarta Composite Index opened higher, showing some domestic resilience even against the weak global backdrop. rri.co.id Similarly, some commodity-linked sectors in India noted modest gains, helping temper the overall decline. Business Standard
Outlook & key upcoming catalysts
- Markets will watch closely for further US economic updates and any comments from the Federal Reserve that could hint at future policy direction.
- The export and trade data from China will remain under the spotlight, as will domestic corporate earnings across Asia.
- If tech earnings disappoint further or valuation concerns deepen, the region may face added downside risk; conversely, a positive turn in trade or policy tone could offer some relief.
Newshub Editorial in Asia – 7 November 2025
Disclosure: The author is not providing investment advice. Readers should consult their own financial advisor before making investment decisions.
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