Asian markets opened higher on Monday, October 27, with most major indices advancing in early trading as investors responded to improving global risk sentiment and resilient corporate earnings. Gains in technology and energy shares helped lift the region’s benchmarks, while a stronger U.S. dollar and lower bond yields provided additional support.

South Korea and Japan Lead the Morning Rally

The KOSPI Composite Index rose 2.50% to 3,941.59, leading regional advances as semiconductor giants like Samsung Electronics and SK Hynix rebounded on improving demand expectations for memory chips. Analysts noted that strong third-quarter earnings from major chipmakers and easing concerns over U.S. trade restrictions on AI components have reignited investor appetite in the sector.

Japan’s Nikkei 225 gained 1.35% to 49,299.65, supported by auto and tech exporters benefiting from the weaker yen, which traded lower at 65.42 on the Japanese Yen Index, down 0.19%. Market participants also welcomed signals from the Bank of Japan that policy tightening will remain gradual, keeping borrowing costs supportive for equities. Despite lingering inflation pressures, Japan’s corporate sector continues to demonstrate earnings resilience, prompting renewed foreign inflows into Tokyo’s equity market.

China and Hong Kong Extend Gains Amid Easing Policy Concerns

In mainland China, the SSE Composite Index added 0.71% to 3,950.31, while Hong Kong’s Hang Seng Index climbed 0.74% to 26,160.15. The modest uptrend came after Chinese industrial profits showed signs of stabilization in September, easing investor worries about slowing manufacturing momentum.

Traders also welcomed speculation that Beijing may announce further liquidity support to boost domestic consumption ahead of year-end. Meanwhile, Hong Kong’s property and technology sectors showed mild recoveries, aided by improved cross-border investor flows and a stronger Chinese yuan outlook. Analysts remain cautiously optimistic that fiscal measures will continue to underpin growth, though foreign investors remain watchful for any policy tightening signals.

Mixed Sentiment in Australia and India

The S&P/ASX 200 in Australia slipped 0.15% to 9,019.00, under pressure from weaker mining and energy stocks after last week’s commodity pullback. The Australian Dollar Index edged slightly higher by 0.03% to 65.11, reflecting steady global demand for risk assets. Traders said that while local equities remain range-bound, optimism surrounding Chinese industrial activity could provide upside support later in the week.

India’s S&P BSE SENSEX declined 0.41% to 84,211.88, snapping a three-day winning streak. Banking and energy stocks retreated as investors locked in profits ahead of key corporate earnings announcements. Rising oil prices also weighed on investor sentiment, with analysts highlighting the potential inflationary impact on India’s import-heavy economy.

Regional Highlights and Market Observations

Across Asia, trading volumes were slightly muted as the Kazakhstan Stock Exchange remained closed for Republic Day, contributing to thinner liquidity across Central Asian and frontier markets. Market watchers said that despite regional optimism, global investors remain sensitive to geopolitical developments and shifts in U.S. Treasury yields, which continue to influence Asian capital flows.

Currency markets reflected a cautious tone, with the yen’s weakness benefiting exporters but keeping inflationary pressure elevated domestically. The divergence between the yen and dollar movements remains a key theme as traders anticipate this week’s Federal Reserve policy discussions and their implications for Asian monetary settings.

The overall regional sentiment suggests that while investors are regaining confidence, caution persists amid an uncertain global backdrop—particularly surrounding U.S.-China trade dynamics and oil market volatility.

In the energy sector, analysts noted that recent U.S. sanctions on Russian and Iranian crude could indirectly impact Asia’s import costs, especially for nations like India and South Korea that depend heavily on discounted oil flows.

Outlook: Eyes on Earnings, Central Banks, and Energy Prices

Looking ahead, Asian investors will closely monitor upcoming corporate earnings releases and central bank commentary for policy direction cues. The region’s short-term performance will likely hinge on global demand signals, particularly from the U.S. and China, as well as fluctuations in energy prices.

While the early-week optimism sets a constructive tone, persistent inflationary pressures and potential oil price spikes remain key downside risks. Market participants will also watch for any fresh geopolitical developments that could affect capital flows and trade stability across Asia. The balance between policy support, corporate performance, and global demand will shape investor sentiment as the final quarter of 2025 unfolds.