Asian markets opened Friday’s morning session on a mixed note, reflecting diverging risk sentiment across the region as investors weighed global macroeconomic trends, currency movements, and local market drivers. With Friday marking the final trading day of the week for most regional exchanges, participants are positioning cautiously ahead of upcoming U.S. data, central bank commentary, and month-end fund flows. Market liquidity is slightly thinner today, partly due to the closure of Thailand’s Stock Exchange in observance of H.M. the Late King’s Birthday.

Korea, India, and Australia Lead Early Gains

South Korea’s KOSPI Composite Index gained 0.50%, rising to 4,048.75 points as technology and automotive sectors continued attracting strong institutional inflows. Investor confidence improved following signs of stabilization in global semiconductor demand, a key driver of Korean exports. India’s S&P BSE Sensex advanced 0.19% to 85,265.32 points, supported by financial services and large-cap industrials. Despite ongoing concerns over inflationary pressures in India, domestic sentiment remains resilient as foreign portfolio investors maintain steady engagement in local equities.

Australia also showed modest strength, with the S&P/ASX 200 inching 0.13% higher to 8,630.00 points. Energy and mining stocks provided support as commodity prices held firm in early trading. The Australian Dollar Index climbed 0.18% to 66.11, reflecting investor optimism tied to expectations of stable monetary policy and firm exports. Overall, these markets exhibited cautious optimism, benefiting from sector-specific tailwinds and steady buying in defensive and growth-oriented assets.

Japan and China Lag as Investors Remain Defensive

Japanese equities struggled in Friday’s morning session, with the Nikkei 225 falling 1.35% to 50,338.77 points. The decline reflects investor caution amid yen fluctuations and concerns over corporate margins. The Japanese Yen Index advanced 0.09% to 64.49, signaling modest currency strength that can weigh on exporters. Market participants are also reassessing expectations for the Bank of Japan’s policy path, adding a layer of uncertainty for near-term equity performance.

Mainland China also recorded losses. The SSE Composite Index fell 0.56% to 3,875.79 points as concerns around liquidity conditions and property-sector challenges persisted. Despite attempts by policymakers to stabilize the economic environment, investor sentiment remains fragile, with market participants awaiting clearer indicators of domestic demand recovery. Meanwhile, Hong Kong’s Hang Seng Index traded flat at 25,935.90 points. The lack of movement suggests investors are waiting for fresh catalysts before taking directional positions, especially amid mixed signals from China’s economic outlook.

Regional Market Dynamics and Thailand’s Market Closure

The broader Asia-Pacific trading landscape is somewhat quieter due to Thailand’s Stock Exchange closure in observance of H.M. the Late King’s Birthday. This national holiday has reduced overall regional liquidity, as Thailand is a notable contributor to Southeast Asian market activity. The closure also influences cross-border investor flows, particularly for funds that actively rotate capital across ASEAN markets.

Even with lower participation from Southeast Asia, the region’s markets reflect a nuanced balance between risk appetite and caution. Currency movements—most notably the moderate strengthening of the Australian Dollar and Japanese Yen—played a role in shaping early sentiment. Investors are also recalibrating expectations around U.S. economic data set to be released later today, which could affect global risk assets and Asian markets in the afternoon session.

Market Outlook for the Remainder of the Day

As Friday’s session progresses, traders will be watching how global macroeconomic indicators, currency fluctuations, and sector-specific developments influence market direction. Key risks remain tied to U.S. interest-rate expectations, Asian export demand, and the policy trajectory of major regional central banks. Opportunities may arise in sectors benefiting from cyclical recovery, particularly in technology, industrials, and commodities. With thinner liquidity due to Thailand’s market closure, intraday volatility may increase, making it essential for investors to monitor volume trends and shifts in cross-regional sentiment as Asia heads toward the weekend.