Asian Market Update – Wednesday Morning, July 23, 2025

Asian markets opened Wednesday with a mixed performance, reflecting investor caution amid global macroeconomic uncertainty, central bank policy signals, and fluctuations in currency strength. While mainland China and Hong Kong posted healthy gains, other major indices such as South Korea’s KOSPI and Japan’s Nikkei 225 edged lower.

China and Hong Kong Lead the Gains

Equities in **mainland China** and **Hong Kong** saw solid morning momentum, fueled by improving sentiment and continued expectations of policy support from Beijing.

**Key market movers:**

• Shanghai Composite Index (000001.SS): Rose by 0.62% to 3,581.86, as traders showed confidence in China’s gradual economic recovery and anticipated easing measures.
• Hang Seng Index: Gained 0.54% to reach 25,130.03, boosted by strong performance in technology and financial stocks.

Investors remain optimistic about stimulus prospects and potential easing in regulatory pressures, especially in property and tech sectors.

Australia Holds Steady Amid Currency Strength

The **S\&P/ASX 200** continued to show resilience with a modest gain of **0.10%**, closing at **8,677.20**. Strong performance in energy and resource stocks supported the index despite mixed global cues.

Meanwhile, the **Australian Dollar Index** climbed **0.46%**, signaling stable investor sentiment and rising commodity-linked optimism.

• S&P/ASX 200 [XJO]: +0.10% to 8,677.20
• Australian Dollar Index: +0.46% to 65.53

Japan’s Market Slips; Yen Gains Ground

Japanese equities faced a slight pullback after hitting multi-decade highs in recent sessions. The **Nikkei 225** fell **0.11%** to **39,774.92**, reflecting some profit-taking by investors and cautious positioning ahead of key global economic data releases.

However, the **Japanese Yen Index** edged up **0.43%**, showing relative strength amid safe-haven demand.

• Nikkei 225: -0.11% to 39,774.92
• Japanese Yen Index: +0.43% to 68.20

South Korea’s KOSPI Leads Declines

South Korea’s **KOSPI Composite Index** recorded the steepest loss among major Asian indices, falling **1.27%** to **3,169.94**. The sharp drop was driven by:

• Heavy selling in technology and semiconductor stocks
• Continued foreign investor outflows
• Concerns about slowing export growth

South Korea’s markets are also facing pressure from a stronger won and geopolitical tension in the region.

India’s Sensex Dips Marginally

The **S\&P BSE SENSEX** slipped slightly by **0.02%** to **82,186.81**, as local investors awaited quarterly earnings from key banking and infrastructure players. The muted movement reflects a wait-and-watch approach ahead of the Reserve Bank of India’s upcoming monetary policy review.

Currency Spotlight: AUD and JPY Show Strength

Both the **Australian Dollar** and **Japanese Yen** strengthened in morning trading, highlighting a mixed risk environment across Asia.

• Australian Dollar Index: 65.53 (+0.46%)
• Japanese Yen Index: 68.20 (+0.43%)

The upward momentum in regional currencies may continue if U.S. inflation data due later this week reinforces expectations of a Fed rate pause.

Outlook for the Rest of the Day

Markets across Asia are likely to remain range-bound through the rest of Wednesday, as traders await:

• Fresh signals from the U.S. Federal Reserve and global central banks
• Economic data releases from Japan and Australia
• Corporate earnings results in India and South Korea

Volatility may increase toward the afternoon session as European markets begin to open and global cues become clearer.