Introduction
Asian equity markets ended lower yesterday, with major indices across the region retreating as investors weighed global economic uncertainty and shifting currency dynamics. Weakness in the Japanese yen and Australian dollar added to concerns, while risk sentiment remained fragile following muted global cues.

Broad-Based Declines Across Asian Equities

The S&P/ASX 200 in Australia slipped 0.41% to close at 8,935.60, as weakness in commodity-linked stocks weighed on the index. In China, the Shanghai Composite (000001.SS) edged down 0.45% to 3,866.13, reflecting ongoing caution around the country’s economic recovery and property market risks.

Meanwhile, Hong Kong’s Hang Seng Index fell 0.67% to 25,657.56, pressured by declines in technology and financial shares. Investors remain watchful of earnings reports and regulatory developments, which have added volatility in recent sessions.

Japanese and Korean Markets Lead Losses

Japan’s benchmark Nikkei 225 recorded one of the sharpest declines in the region, dropping 0.97% to 42,394.40, as a stronger dollar against the yen weighed on investor sentiment. The Japanese Yen Index fell 0.54% to 67.67, marking continued currency weakness that has sparked debate on potential policy adjustments from the Bank of Japan.

In South Korea, the KOSPI Composite Index lost 0.95%, closing at 3,179.36, amid selling in semiconductor and tech shares. Analysts suggest the recent pullback reflects profit-taking after a strong start to the quarter.

Indian Markets Mirror Regional Trend

India’s S&P BSE SENSEX shed 0.68% to settle at 81,083.81, tracking losses in Asian peers. Banking and IT stocks led the decline, with traders booking profits following recent gains. While domestic fundamentals remain strong, global headwinds and foreign fund flows continue to influence short-term direction.

Currency Moves Add to Market Pressure

The Australian Dollar Index slipped 0.15% to 64.82, highlighting ongoing softness in commodity currencies as investors assess China’s demand outlook. Persistent volatility in forex markets has added another layer of uncertainty for regional equity traders, amplifying risk-off sentiment.

Outlook
Market participants remain cautious as attention shifts to upcoming U.S. economic data and policy signals from major central banks. With currency fluctuations and geopolitical risks in play, Asian markets may continue to experience choppy trading sessions in the near term.