Asian equities opened Tuesday, September 23, on a generally positive note, with regional benchmarks reflecting investor confidence in a supportive monetary environment. While Japanese and South Korean stocks led the advance, markets in Hong Kong and India struggled, underscoring the divergent performance across the region. The latest moves come as investors weigh global interest rate expectations, geopolitical risks, and currency stability.

Japan and South Korea Take the Lead

The Nikkei 225 surged 0.99% to 45,493.66, driven by robust gains in technology exporters and cyclical sectors benefiting from a weaker yen. Market participants cited strong global demand for semiconductors and machinery as catalysts, with investors positioning for sustained corporate earnings momentum into the fourth quarter.

In South Korea, the KOSPI Composite Index rose 0.68% to 3,468.65, supported by heavyweight chipmakers and battery producers. Local analysts note that foreign inflows have returned after weeks of selling pressure, reflecting improved sentiment toward the region’s tech supply chain.

China and Australia Edge Higher

The SSE Composite Index in Shanghai advanced 0.22% to 3,828.58, continuing a gradual recovery amid Beijing’s ongoing policy support for housing and infrastructure. Market observers highlight that while investor confidence remains fragile, liquidity injections and regulatory easing are helping stabilize sentiment.

In Australia, the S&P/ASX 200 added 0.43% to 8,810.90, buoyed by mining and energy stocks as commodity prices held firm. Traders also pointed to resilience in the Australian economy, with steady labor market data supporting expectations for stable household spending despite higher borrowing costs.

Weakness in Hong Kong and India

Contrasting the gains elsewhere, the Hang Seng Index fell 0.76% to 26,344.14 as property developers and consumer discretionary names weighed on sentiment. Persistent capital outflows and concerns about corporate earnings have continued to drag on Hong Kong equities, even as Chinese mainland markets stabilize.

India’s S&P BSE SENSEX slipped 0.56% to 82,159.97. Financials and consumer stocks led declines, as investors turned cautious ahead of key inflation and industrial production data later this week. Market participants remain attentive to whether recent foreign investment inflows can be sustained under a stronger U.S. dollar backdrop.

Currency Moves Remain Contained

In currency markets, the Japanese yen index edged up 0.12% to 67.67, while the Australian dollar index gained 0.08% to 65.97. The subdued moves reflect cautious positioning ahead of upcoming U.S. Federal Reserve commentary, which is expected to provide more clarity on the timing of interest rate adjustments. Analysts note that Asian currency stability will be closely tied to the Fed’s policy trajectory and broader risk appetite.

Forward-Looking Outlook

As Tuesday’s session unfolds, investors will closely monitor signals from global central banks, commodity price trends, and geopolitical developments. Japan and South Korea appear well positioned to benefit from cyclical tailwinds, while Hong Kong and India face near-term challenges that could limit upside potential. Currency stability remains a key focus, as even modest shifts in the yen or Australian dollar could ripple through export competitiveness and capital flows. Looking ahead, the interplay between global monetary easing expectations and regional growth prospects will likely set the tone for Asian equities through the remainder of the week.