Regional stock indices open higher as investor sentiment improves

Asian stock markets opened mostly higher on Tuesday, August 5, 2025, supported by strong performances in Hong Kong, South Korea, and China, while Japan faced selling pressure. Investor confidence was buoyed by regional earnings, stable inflation data, and a measured tone from central banks.

Hong Kong and South Korea outperform regional peers

Hong Kong’s Hang Seng Index climbed 0.92% to 24,733.45, making it one of the best-performing indices in Asia this morning. Gains were fueled by a rebound in Chinese tech stocks listed in Hong Kong, amid renewed expectations for regulatory support.

South Korea’s KOSPI Composite Index also rose by 0.91% to 3,147.75. Chipmakers and financials led the advance, driven by solid earnings results and positive trade figures released earlier this week.

Chinese and Indian indices see moderate gains

The SSE Composite Index in Shanghai added 0.66% to reach 3,583.31. Sentiment in mainland China remained cautiously optimistic, as investors await further economic stimulus announcements from Beijing to bolster slowing growth.

In India, the S&P BSE SENSEX advanced 0.52% to trade at 81,018.72, supported by strength in the infrastructure and banking sectors. The Indian market continues to benefit from strong corporate earnings and ongoing capital inflows from foreign institutional investors.

Mixed performance from Australia and Japan

Australia’s S&P/ASX 200 Index remained flat, ticking up just 0.02% to 8,663.70. Investors are awaiting domestic earnings reports and economic commentary from the Reserve Bank of Australia later this week.

Japan’s Nikkei 225 was the region’s laggard, falling 1.25% to 40,290.70. The decline was driven by profit-taking in large-cap technology stocks and a stronger yen, which is weighing on export-oriented companies.

Currency indices show divergence

In Asian currency markets, performance was mixed:

• Japanese Yen Index: Up 0.53% to 67.99, reflecting increased safe-haven demand as investors remain cautious about global volatility.
• Australian Dollar Index: Down 0.04% to 64.67, as softer commodity prices pressured the local currency.

Highlights from Tuesday’s morning session

• Most major Asian markets are trading in positive territory, supported by strong earnings and macroeconomic stability.
• Hong Kong and South Korea are leading gains, driven by tech and semiconductor stocks.
• Japan’s Nikkei sees a sharp pullback amid currency strength and investor profit-taking.
• Currency movements remain a key focus as traders assess inflation and commodity trends.

Market outlook: Global cues and earnings in focus

Looking ahead, investors in Asia are expected to monitor overnight developments from the U.S. market, as well as further earnings results across the region. Key macroeconomic data releases from China, India, and Australia later this week may influence trading sentiment and guide short-term positioning.

Despite ongoing global uncertainties, including geopolitical risks and uneven economic recoveries, analysts remain cautiously optimistic about Asian equities — especially in markets where central banks maintain a steady policy stance.