Asian markets opened the Tuesday morning session with mixed performance as investors reassessed risk appetite ahead of upcoming global economic data and regional policy developments. Market participants continued reacting to currency fluctuations, weakness across technology-linked equities, and diverging domestic fundamentals.

Japan and South Korea Lead Declines as Tech Momentum Weakens

Japan’s Nikkei 225 dropped 1.99 percent to 49,323.30, driven by pronounced selling in major technology and semiconductor stocks. Investor sentiment was pressured by weakness in global tech futures, particularly those tied to the Nasdaq, signaling potential earnings headwinds for large-cap Asian tech exporters. The Japanese Yen Index fell 0.45 percent, extending its decline against major currencies. Although a weaker yen typically supports export-focused sectors, broader concerns over global demand overshadowed any immediate competitive benefits.

South Korea’s KOSPI Composite Index fell 1.84 percent to 4,013.91, reflecting similar pressures across chipmakers, EV battery producers, and consumer technology firms. Investors remain cautious over cooling global electronics demand and rising inventory levels, which could weigh on fourth-quarter earnings. Despite attractive valuations in several growth segments, the morning session saw limited conviction among domestic and foreign buyers.

China and Hong Kong Trade Lower as Investors Await Stronger Catalysts

China’s SSE Composite Index slipped 0.46 percent to 3,972.03 in early trade, with investor sentiment dampened by ongoing uncertainty surrounding property-sector recovery and local government financing risks. Although recent credit data and policy guidance have leaned supportive, investors appear reluctant to position aggressively without clearer evidence of durable stabilization.

Hong Kong’s Hang Seng Index declined 0.71 percent to 26,384.28 as technology, e-commerce, and consumer-growth names saw renewed selling. Cross-border liquidity remained soft, and foreign institutional investors have taken a more selective approach toward regional exposure. Defensive sectors, including utilities and telecoms, continued to outperform as investors favored stability over high-volatility speculative plays.

India Extends Resilience as Australia Faces Broad-Based Weakness

India’s S&P BSE Sensex gained 0.46 percent to reach 84,950.95, supported by strong domestic flows and continued optimism around infrastructure expansion and financial sector performance. India’s economic trajectory remains one of the most robust among major Asian economies, drawing sustained interest from global investors seeking diversification against more volatile markets.

Australia’s S&P/ASX 200, however, declined 1.32 percent to 8,522.40 amid weakness in mining, energy, and financials. The Australian Dollar Index dropped 0.73 percent, signaling investor concerns about global commodity demand and lingering unease around China’s uneven recovery. Markets are closely monitoring signals from the Reserve Bank of Australia, with expectations shifting toward a more cautious policy stance as external headwinds intensify.

Regionally, trading volume was slightly subdued due to the closure of the Oman Stock Exchange, which is observing the Islamic New Year (Hijri). The holiday contributed to reduced participation from Middle Eastern investors and temporarily softened cross-regional trading activity.

Outlook: Key Market Signals to Watch

In the coming sessions, investors will closely track currency movements, U.S. economic data releases, and upcoming central bank communications that may influence broader sentiment across Asia. Key risks include continued pressure on technology valuations, geopolitical uncertainty affecting supply chains, and signs of fragility in China’s recovery. Opportunities, however, remain in structurally resilient markets such as India, alongside potential value openings in Japan and Australia should currency volatility ease. With performance diverging sharply across the region, the next few days are likely to provide important signals that shape investor positioning heading into the rest of the week.