Highlights:

– Hang Seng leads gains with a 2.15% rally in Hong Kong.
– Nikkei 225 and KOSPI retreat sharply amid currency pressures.
– Investors eye global policy cues as regional currencies show volatility.

Asian equities opened Tuesday, September 2, on a mixed note as investors balanced optimism in Hong Kong and India against weakness in Japan and South Korea. Currency moves, particularly in the yen, added pressure on exporters, while renewed strength in India’s Sensex reflected resilience in South Asia’s growth story.

Hong Kong and India Outperform Regional Peers

Hong Kong’s Hang Seng Index surged 2.15% to close at 25,617.42, leading gains across Asia as investors rotated back into Chinese-linked equities after recent losses. The rebound was driven by technology and property stocks, with traders speculating on potential stimulus support from Beijing.

India’s S&P BSE Sensex also delivered strong performance, climbing 0.70% to 80,364.49. The index remains close to record highs, reflecting foreign investor confidence and steady domestic consumption trends. Analysts note that India continues to attract inflows as global funds diversify exposure away from China.

China and Australia Post Modest Moves

The SSE Composite Index in Shanghai added 0.46%, finishing at 3,875.53. Gains were modest as markets await further signals from Chinese policymakers regarding growth targets and fiscal stimulus measures. Investor sentiment remains cautious amid ongoing property sector concerns.

In Australia, the S&P/ASX 200 slipped 0.51% to 8,927.70. The decline was led by mining and energy shares, with commodity prices coming under renewed pressure. Traders are also positioning ahead of key Reserve Bank of Australia commentary expected later this week, which could shape expectations for monetary policy into Q4.

Japan and South Korea Struggle as Currency Concerns Mount

Japan’s Nikkei 225 dropped 1.24% to 42,188.79, weighed down by exporters after the Japanese yen index weakened to 68.00 (-0.11%). A softer currency raises import costs and adds inflationary pressures, complicating the Bank of Japan’s policy outlook. Investors are watching closely for any sign of intervention.

South Korea’s KOSPI Composite Index recorded the steepest decline, falling 1.35% to 3,142.93. Technology stocks led the downturn as concerns about global demand weighed on semiconductor names. The index’s performance reflects South Korea’s vulnerability to global trade frictions and slowing electronics exports.

Currency Moves Add to Regional Volatility

The Australian dollar index gained 0.18% to 65.39, supported by stronger commodity-linked sentiment despite local equity weakness. Meanwhile, the yen’s decline fueled caution, particularly as markets brace for potential U.S. economic data releases later this week that could shift dollar dynamics.

With Asian markets split between gains in Hong Kong and India and losses in Japan and South Korea, investors remain focused on policy developments, currency stability, and global growth signals. The coming days will be critical in shaping sentiment as both local and international factors weigh on the region’s financial landscape.