Highlights:

– Nikkei 225 surges 1.45%, leading Asian benchmarks in early Tuesday trading.

– Hang Seng and KOSPI strengthen, supported by risk appetite in tech and financials.

– Australian market underperforms, with ASX slipping despite a firmer Australian dollar.

Asian equities opened Tuesday, September 9, 2025, with mostly positive momentum as investors digested a mix of regional growth signals, currency moves, and commodity price trends. While Japan and Hong Kong posted notable gains, Australia’s market showed early weakness, underscoring diverging performance across the region.

Japan’s Nikkei Pushes Higher to Lead Regional Rally

Tokyo’s Nikkei 225 advanced 1.45% to 43,643.81, setting the tone for broader Asian markets. The rally was underpinned by strong corporate earnings expectations and renewed optimism around Japanese exporters, buoyed by a weaker yen.

The Japanese yen index slipped 0.08%, reflecting ongoing investor positioning toward dollar strength. A softer yen often supports Japan’s export-heavy economy, particularly in sectors like autos and electronics. Investors are also awaiting domestic inflation figures later this week, which could guide the Bank of Japan’s policy stance.

Hong Kong and South Korea Extend Gains

The Hang Seng Index climbed 0.85% to 25,633.91, supported by financials and Chinese tech giants. Sentiment in Hong Kong remains closely tied to the Chinese mainland, where the Shanghai Composite (SSE) added 0.38% to 3,826.84. Investors remain cautious but optimistic that Beijing will maintain accommodative policies to stabilize growth amid uneven economic data.

In South Korea, the KOSPI gained 0.45% to 3,219.59, with semiconductor shares driving the uptick. The country’s market continues to benefit from strong demand for advanced chips, tied to AI and data center infrastructure. South Korea’s resilience also reflects stable export orders, despite global trade uncertainties.

India and China Show Resilient but Modest Moves

India’s S&P BSE Sensex edged up 0.09% to 80,787.30, reflecting cautious investor positioning after recent record highs. Traders are balancing optimism around India’s domestic demand with concerns about capital flows and global interest rates.

Meanwhile, the SSE Composite in Shanghai rose 0.38%, showing modest strength in early trading. Chinese markets are being closely watched as authorities continue to manage property sector risks and deliver incremental stimulus measures. Investors remain attentive to upcoming data on trade and industrial output, which could set the tone for regional sentiment.

Australia Lags Despite Firmer Currency

Australia’s S&P/ASX 200 (XJO) slipped 0.24% to 8,849.60, making it the only major Asian benchmark in negative territory. Losses were concentrated in energy and materials, as global commodity prices softened overnight.

Interestingly, the Australian dollar index rose 0.44% to 65.90, signaling firm demand for the currency even as equities weakened. A stronger Aussie dollar can sometimes weigh on export competitiveness, particularly in mining and agriculture, which remain central to Australia’s economic performance.

Regional Currency Trends and Investor Outlook

Currency markets remain a key driver of sentiment. The yen’s slight dip highlighted ongoing divergence between Japanese and U.S. monetary policy. Meanwhile, the Australian dollar’s resilience may reflect stable commodity exports and investor confidence in Australia’s longer-term fundamentals.

Across Asia, traders are also keeping a close watch on U.S. economic indicators due later this week, particularly the Consumer Price Index, which could influence Federal Reserve policy and global risk appetite.

Looking Ahead

Tuesday’s trading session has so far underscored resilience in Asian equities, led by Japan, Hong Kong, and South Korea. Yet, the divergence seen in Australia points to ongoing sectoral and macroeconomic challenges.

Key factors to watch in the coming days include:

• U.S. inflation data and its implications for global interest rate expectations.
• China’s trade and industrial output figures, expected to provide insight into the health of the world’s second-largest economy.
• Currency fluctuations, particularly the yen and Australian dollar, which remain closely tied to regional equity performance.

As the day progresses, Asian markets appear poised to maintain a cautiously optimistic tone, though global economic signals later in the week will likely determine whether the rally can extend.