Asian markets opened Wednesday, October 29, on a subdued note, with traders navigating mixed signals from global markets and stronger regional currencies. Risk appetite weakened ahead of key macroeconomic data from the U.S. and Asia, while holiday closures in Hong Kong and Türkiye limited overall trading volume across the region.

Japan: Yen Strength Weighs on Exporters

Japan’s Nikkei 225 fell 0.58% to 50,219.18 in morning trade as the strengthening Yen pressured export-heavy sectors, including automakers and electronics manufacturers. Investors turned defensive ahead of the Bank of Japan’s upcoming policy meeting, with speculation mounting over potential adjustments to its yield-curve control framework.

Technology shares led the declines, following a weaker overnight performance by U.S. tech stocks. Analysts said the recent rally in the Yen, which gained 0.52% to 65.76, signaled a broader rotation into safe-haven assets as global yields remained volatile. Despite the pullback, market participants noted that corporate earnings from Japan’s industrial sector remain resilient, providing some cushion for downside risk.

South Korea: Kospi Slides on Chip Weakness

The KOSPI Composite Index fell 0.80% to 4,010.41, extending losses from earlier in the week as semiconductor stocks faced renewed selling pressure. Investors continued to trim risk exposure amid cautious global sentiment and concerns about export competitiveness.

Foreign investors were net sellers of Korean equities, driven in part by a firmer Yen and uncertainty over global demand for memory chips. Analysts expect short-term volatility to persist, especially as earnings from major tech companies influence sentiment toward the broader sector.

China: Mainland Shares Edge Lower on Economic Uncertainty

China’s Shanghai Composite Index (000001.SS) slipped 0.22% to 3,988.22 as traders awaited fresh data on industrial profits and manufacturing activity. The recent signs of uneven economic recovery have led to cautious positioning, particularly among institutional investors.

Market observers noted that policy support from Beijing, including infrastructure stimulus and liquidity measures, has helped stabilize markets, but sustained momentum remains elusive. Chinese technology and financial stocks saw mild declines, while consumer and energy shares provided limited support.

Australia: ASX Declines as Commodity Stocks Weaken

Australia’s S&P/ASX 200 Index [XJO] dropped 0.48% to 9,012.50, weighed down by losses in energy, mining, and financial shares. Despite steady commodity prices, traders cited concerns about slowing demand in China and global growth headwinds as reasons for the retreat.

The Australian Dollar Index rose 0.45% to 65.84, supported by stronger-than-expected domestic economic data and a stable commodities outlook. However, analysts warned that continued currency strength could hinder export performance in the coming quarters if global demand weakens.

Hong Kong: Market Closed for Chung Yeung Festival

Trading on the Hong Kong Stock Exchange was paused Wednesday for the Chung Yeung Festival. The closure contributed to reduced regional trading volumes, with investors awaiting the resumption of activity later in the week.

Market participants are expected to refocus on property sector updates and Chinese tech earnings when trading resumes. The Hang Seng Index last closed at 26,346.14, with investor sentiment still fragile amid policy shifts and geopolitical uncertainty.

Regional Overview and What to Watch

The mixed performance across Asia underscores an increasingly defensive tone among investors as global monetary policy uncertainty lingers. The strength in the Yen and Australian Dollar reflects a pivot toward safer positions while equity markets digest upcoming economic indicators.

In the days ahead, traders will closely monitor China’s manufacturing data, Japan’s inflation outlook, and corporate earnings releases across Asia. Central bank decisions — particularly from the Bank of Japan and the Federal Reserve — will be critical in shaping November’s market trajectory.

While near-term sentiment remains cautious, analysts say that selective buying opportunities could emerge in undervalued technology and consumer sectors once policy clarity improves and regional growth stabilizes.