Asian equities closed largely in positive territory on Tuesday, November 25, as investors reacted to encouraging signs of policy support from China and steady global demand indicators. Gains were strongest in mainland China and Hong Kong, helping to offset mild losses in Japan and India. Market sentiment improved as investors grew more confident about Asia’s economic resilience heading into the final month of 2025.

The SSE Composite Index gained 0.87% to close at 3,870.02, while Hong Kong’s Hang Seng Index advanced 0.69% to 25,894.55. Elsewhere, South Korea’s KOSPI Composite Index rose 0.30%, and Australia’s S&P/ASX 200 edged up 0.14%. Meanwhile, Japan’s Nikkei 225 inched up 0.07% to 48,659.52, and India’s S&P BSE Sensex fell 0.30%, reflecting profit-taking after recent gains.

China and Hong Kong Drive Regional Momentum

Chinese stocks led the region higher as investors welcomed new indications that Beijing may introduce additional fiscal and monetary measures to stabilize growth. The SSE Composite Index climbed 0.87%, with property, technology, and financial shares among the top performers.

Market participants cited growing confidence that policymakers will continue supporting key sectors through infrastructure spending and credit easing. The rally in mainland equities spilled over into Hong Kong, where the Hang Seng Index rose 0.69% amid renewed interest in Chinese tech and consumer shares.

Investors also drew optimism from improving trade sentiment and a rebound in manufacturing data, suggesting that Asia’s second-largest economy is gradually regaining momentum. Analysts noted that while challenges remain, such as weak domestic demand and property-market stress, signs of targeted government intervention have started to reassure global investors.

Japan and South Korea Post Modest Gains

In Japan, the Nikkei 225 managed a modest 0.07% rise to 48,659.52, as gains in industrial and export-oriented stocks offset declines in technology and financials. The Japanese yen weakened 0.32% to 63.74, which lent some support to exporters but also highlighted continued currency volatility.

Market analysts suggested that investors are cautious ahead of key inflation data, which could influence the Bank of Japan’s policy stance. The yen’s depreciation has raised concerns about import costs, but it has simultaneously improved competitiveness for Japan’s manufacturing sector.

South Korea’s KOSPI Composite Index gained 0.30%, supported by semiconductor and electronics shares. The tech-heavy index benefited from improving global demand forecasts for chips and consumer electronics, helping offset broader caution in regional markets.

Australia and India Diverge as Commodities and Currencies Shift

Australia’s S&P/ASX 200 added 0.14% to 8,537.00, as gains in mining and energy stocks helped balance declines in consumer sectors. The Australian Dollar Index edged up 0.13% to 64.62, buoyed by stable commodity prices and signs of ongoing resilience in the labor market.

Analysts noted that steady commodity exports continue to support Australia’s economic outlook, though subdued Chinese demand remains a potential headwind. Investors are also eyeing upcoming remarks from the Reserve Bank of Australia, which could signal the central bank’s direction on rate adjustments early next year.

In contrast, India’s S&P BSE Sensex fell 0.30% to 84,598.44, as investors locked in profits following several sessions of record highs. Financial and technology shares led the declines, reflecting a slight cooling of sentiment amid global market uncertainty. Despite the minor pullback, analysts remain optimistic about India’s long-term growth trajectory, supported by strong corporate earnings and robust domestic consumption.

Outlook: Monitoring Policy Shifts and Currency Dynamics

Looking ahead, Asian markets are expected to remain steady but cautious as investors await key economic data from China and Japan, along with updates on global trade and inflation trends. The region’s outlook remains largely constructive, supported by ongoing policy support in China, stable inflation in Japan, and resilient demand across South and Southeast Asia.

However, potential risks persist. Fluctuating currency movements—particularly the weakening yen and strengthening dollar—could impact export competitiveness and capital flows. Additionally, uncertainty surrounding the pace of China’s policy implementation may influence near-term volatility.

Still, investors remain optimistic that Asia will continue to lead global growth in 2026, buoyed by strong manufacturing fundamentals and increasing regional trade integration. Market watchers suggest that maintaining a diversified approach—balancing exposure to defensive sectors and growth-oriented assets—will be key as the region navigates a dynamic but promising economic environment.