Asian markets opened mostly lower on Thursday, with investors across the region adopting a cautious stance as they assessed mixed signals from global equities, ongoing concerns about interest rates, and renewed uncertainty surrounding trade and growth prospects in major economies.
Mixed performance across key Asian indices
Trading in the Asia-Pacific region began unevenly, reflecting a lack of clear direction from Wall Street overnight. Japanese equities slipped in early trade, with the Nikkei 225 under pressure from a stronger yen and weakness in export-oriented stocks. In contrast, China’s mainland markets opened narrowly mixed, as modest gains in industrial and infrastructure-linked shares were offset by continued softness in property-related sectors. Hong Kong’s Hang Seng index edged lower at the open, weighed down by technology and consumer discretionary stocks.
China and regional growth concerns
Investor sentiment remained fragile as markets continued to digest signals of slowing momentum in China’s broader economy. While recent policy measures from Beijing have aimed to stabilise growth and support liquidity, confidence has yet to fully recover. Traders remained selective, favouring state-backed enterprises and dividend-paying stocks over higher-risk growth names. Across the wider region, concerns over export demand and supply-chain resilience continued to influence positioning, particularly in economies closely tied to Chinese trade flows.
Japan focuses on currency and policy outlook
In Japan, attention remained firmly on currency movements and monetary policy expectations. The yen’s recent firmness against the US dollar weighed on major exporters, while domestic-focused stocks showed greater resilience. Investors are increasingly focused on signals from the Bank of Japan regarding the pace of policy normalisation, as higher borrowing costs could reshape equity valuations after years of ultra-loose monetary conditions.
Technology stocks under pressure
Technology shares across Asia opened under pressure, following a subdued session in US tech stocks. Semiconductor-related names in South Korea and Taiwan traded lower in early dealings, as investors reassessed valuations after a strong year-to-date performance. While long-term demand linked to artificial intelligence and data infrastructure remains supportive, near-term caution prevailed amid profit-taking and uncertainty over global capital expenditure cycles.
Southeast Asia and emerging markets
Markets in Southeast Asia opened mixed, with investors balancing domestic economic data against external risks. Inflation trends and currency stability remained key themes, particularly for economies sensitive to global capital flows. In Australia, the benchmark index opened slightly lower, as weakness in mining stocks offset strength in defensive sectors such as healthcare and utilities.
Looking ahead
As the trading day unfolds, investors are expected to remain data-dependent, closely monitoring economic releases, central bank commentary and developments in global trade relations. With year-end positioning and portfolio rebalancing underway, volatility may remain elevated, and sentiment fragile. For now, Asian markets appear set to move cautiously, reflecting a broader global search for clarity on growth, inflation and interest-rate trajectories.
Newshub Editorial in Asia – 18 December 2025
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