Asian equity markets opened Monday on a mixed footing, with investors weighing tentative signs of regional economic resilience against persistent uncertainty over global monetary policy, currency movements, and geopolitical risk. Early trade reflected cautious positioning rather than strong conviction, as market participants assessed year-end data, commodity prices, and signals from the US and Europe.
Japan opens steady amid yen sensitivity
In Tokyo, Japanese equities opened largely steady, with export-oriented names closely tracking movements in the yen. A softer currency continued to provide earnings support for manufacturers and technology firms, while domestic stocks were influenced by expectations that policy normalisation will remain gradual. Financials attracted selective interest, reflecting confidence in stable credit conditions, although gains were capped by subdued overseas leads.
China sees selective buying as policy support remains in focus
Mainland Chinese markets opened with modest gains in select sectors, particularly those linked to infrastructure, advanced manufacturing, and energy transition themes. Investors remain attentive to ongoing policy support aimed at stabilising growth and restoring confidence in the property sector. At the same time, broader sentiment stayed restrained, with traders wary of uneven domestic demand and the pace of recovery in private consumption.
Hong Kong trades cautiously as global risk appetite softens
Hong Kong equities opened slightly lower, under pressure from technology and consumer discretionary shares. The market continued to mirror shifts in global risk appetite, with investors trimming exposure ahead of key macro signals later in the week. Financial stocks offered limited support, while turnover suggested a wait-and-see approach rather than aggressive repositioning.
South Korea edges higher on technology resilience
South Korean stocks opened marginally higher, supported by strength in semiconductors and electronics. Expectations of stabilising global demand for memory chips helped underpin sentiment, even as concerns lingered around export momentum and regional trade flows. Defensive sectors also saw interest, reflecting a preference for earnings visibility in a still-uncertain global environment.
India opens firm on domestic growth confidence
Indian equities opened firmer, buoyed by continued confidence in domestic growth dynamics and strong retail participation. Banking and infrastructure-related stocks led early gains, supported by expectations of sustained credit expansion and public investment. While valuations remain elevated by historical standards, investors appeared comfortable maintaining exposure amid relatively robust macro fundamentals.
Regional outlook remains cautious but constructive
Across Asia, the overall tone at the open was cautious yet broadly constructive. Investors are increasingly differentiating between markets with strong domestic demand and those more exposed to external headwinds. Currency movements, energy prices, and signals from global central banks are expected to remain key drivers in the near term. For now, Asian markets appear positioned for incremental moves rather than decisive trends, as participants await clearer direction from global economic data and policy developments.
Newshub Editorial in Asia – 29 December 2025
Recent Comments