Asian equity markets opened Thursday, November 20, on a broadly positive trajectory, supported by improving global risk sentiment and renewed demand for technology and cyclicals. While most major benchmarks advanced, the morning session also highlighted ongoing currency volatility and selective weakness in Hong Kong. Investor tone remained constructive, reflecting optimistic macro expectations and easing concerns around global monetary policy paths.

Japan Leads with Tech Strength and Support from Yen Weakness

Japan’s Nikkei 225 surged 3.48 percent to 50,227.03, marking the strongest performance in the region. Heavyweight technology stocks and export-driven companies led the advance, boosted by a Japanese Yen Index decline of 1.04 percent. The weaker yen improved earnings expectations for major manufacturers, reinforcing investor appetite for Japanese equities.
The rally underscored growing confidence in Japan’s economic stabilization efforts, supported by expectations that the Bank of Japan will move cautiously on policy tightening. The combination of favorable currency trends and strong global demand signals positioned Japan as a preferred destination for risk-seeking investors in the morning session.

China, India, and Australia See Stable but Divergent Moves

Mainland Chinese equities posted modest gains, with the SSE Composite Index ticking up 0.18 percent. Investors balanced improving liquidity conditions with ongoing concerns about property-sector stress and uneven consumer demand. Attention remained focused on potential fiscal and stimulus announcements as policymakers work to stabilize momentum into year-end.
India’s S&P BSE Sensex rose 0.61 percent to 85,186.47, supported by strength in financials, energy, and consumer-focused stocks. Robust corporate earnings and resilient domestic demand maintained India’s status as one of the region’s more stable markets, with institutional investors continuing to drive net inflows.
In Australia, the S&P/ASX 200 advanced 1.02 percent, buoyed by gains in mining and banking shares. A weaker Australian Dollar Index, down 0.48 percent, lent additional support to exporters. While commodity demand trends provided a positive backdrop, investors remained alert to inflation pressures and the Reserve Bank of Australia’s upcoming signals.

Hong Kong Underperforms as Local Sentiment Remains Fragile

The Hang Seng Index declined 0.38 percent to 25,830.65, diverging from the broader regional advance. Weakness in Chinese property-linked stocks and ongoing uncertainty surrounding tech-sector regulation weighed on sentiment. While selective strength emerged in financials and consumer names, foreign investor confidence remained fragile, influenced by geopolitical considerations and uneven earnings momentum.
The underperformance highlighted persistent structural challenges facing Hong Kong markets, even as neighboring regions benefited from a more constructive global risk environment.

Outlook for the Rest of the Trading Day

Looking ahead, investor attention will turn to currency movements, central-bank commentary, and global futures signals as catalysts for the afternoon session. Continued yen weakness could further amplify Japan’s rally, while traders will watch closely for any indications of additional stimulus measures out of China. Profit-taking risk may also emerge after this morning’s strong upward move. With geopolitical developments, commodity price swings, and macroeconomic data releases still capable of influencing sentiment, markets are likely to experience intermittent volatility alongside selective opportunities for rotation-driven gains.