Introduction
Asian markets ended Tuesday’s session in the red, as investors digested persistent global economic uncertainty, currency volatility, and cautious sentiment ahead of key macroeconomic data releases. Major indices across the region registered losses, with tech-heavy benchmarks and financial stocks leading the declines.

Broad-Based Declines Across Major Asian Indices

The Nikkei 225 slipped 0.97% to 42,394.40, marking its weakest performance in over a week as a stronger yen weighed on exporters and technology shares. Meanwhile, Japan’s Yen Index fell 0.54% to 67.67, highlighting ongoing currency fluctuations despite central bank efforts to stabilize markets.

In China, the Shanghai Composite (000001.SS) closed 0.39% lower at 3,868.38, as renewed concerns over property sector debt and sluggish consumer demand pressured investor sentiment. Hong Kong’s Hang Seng Index was the day’s worst performer, tumbling 1.18% to 25,524.92, driven by sharp losses in tech and financial stocks.

South Korea’s KOSPI Composite also faced selling pressure, retreating 0.95% to 3,179.36, as foreign investors trimmed holdings amid rising global bond yields and uncertainty over semiconductor demand.

Australian and Indian Markets Join the Downtrend

In Australia, the S&P/ASX 200 slipped 0.41% to 8,935.60, as energy and materials stocks struggled despite resilient commodity prices. The Australian Dollar Index edged 0.15% lower to 64.82, signaling cautious currency markets amid global risk-off mood.

India’s benchmark S&P BSE Sensex declined 0.82% to 80,964.68, dragged down by banking and IT stocks as investors booked profits after recent record highs. Concerns over domestic inflation and upcoming GDP figures also added to the cautious tone.

Key Drivers: Currency Moves, Rate Uncertainty, and Global Headwinds

Market sentiment across Asia was dampened by uncertainty surrounding global monetary policy and concerns over slowing economic growth in major economies. Currency weakness—particularly in the yen and Australian dollar—highlighted the challenges facing central banks as they balance inflation control with economic stability.

Investors remain focused on upcoming U.S. economic data and statements from Federal Reserve officials, which could set the tone for global interest rate expectations. Additionally, geopolitical risks and lingering trade tensions continue to weigh on regional markets.

Outlook
With Asia’s major indices closing broadly lower, traders are likely to maintain a cautious approach heading into midweek sessions. Market participants will be watching closely for U.S. inflation data, China’s industrial output numbers, and any fresh policy signals from Asian central banks.