Asian markets opened Monday, October 13, on a mixed note as investor sentiment diverged across the region. With Japan and Thailand observing national holidays, trading volumes were subdued. Gains in South Korea and India provided a modest boost, but losses in China and Hong Kong weighed on overall momentum. Currency markets showed renewed volatility, reflecting investor caution amid shifting rate expectations and fragile global demand.

Regional Gains Led by South Korea, While China and Hong Kong Struggle

South Korea’s KOSPI Composite Index rose 1.73% to 3,610.60, marking one of the strongest openings this month. The rally was driven by optimism in the technology and semiconductor sectors, as global chip demand continued to rebound and export data showed signs of stabilization. India’s S&P BSE Sensex added 0.40% to 82,500.82, supported by strength in banking and infrastructure stocks ahead of key corporate earnings reports.

In contrast, China’s SSE Composite Index fell 0.94% to 3,897.03, weighed by weak property sector data and lingering concerns about deflationary pressures. The Hang Seng Index in Hong Kong slumped 1.73% to 26,290.32 as investors reduced exposure to major tech and real estate firms. Market sentiment in Greater China remained cautious amid continued capital outflows and uncertainty about the government’s next stimulus measures.

Market Holidays Dampen Regional Trading Activity

Trading activity was limited as Japan’s Tokyo Stock Exchange remained closed for National Sports Day, while Thailand’s Stock Exchange was closed in observance of H.M. King Bhumibol Adulyadej Memorial Day (Substitution). These closures reduced regional liquidity and left markets largely reacting to external signals from the U.S. and Europe.

The Nikkei 225, which last settled at 48,088.80, will resume trading on Tuesday. Japanese equities have been performing strongly in recent weeks, supported by corporate governance reforms and investor interest in value-oriented industrial and export sectors. Traders are expected to assess whether the recent upward momentum will continue once the market reopens.

Currency Movements Highlight Global Uncertainty

The Japanese Yen Index strengthened 1.22% to 66.14, reflecting renewed safe-haven demand as investors navigated geopolitical risks and fluctuating interest rate expectations. In contrast, the Australian Dollar Index weakened 1.17% to 64.77, pressured by lower commodity prices and reduced speculation of additional rate hikes from the Reserve Bank of Australia.

Australia’s S&P/ASX 200 slipped 0.13% to 8,958.30, as declines in energy and mining stocks offset modest gains in healthcare and technology. Resource-linked shares tracked softer iron ore and coal prices following weaker demand projections from China, Australia’s largest trading partner.

Outlook: Focus on Inflation Data and Central Bank Signals

Looking ahead, investors across Asia will monitor key economic releases, including U.S. inflation data and China’s credit and lending figures, for guidance on monetary policy trends. With the reopening of Japan and Thailand midweek, regional volumes are expected to normalize, providing a clearer view of sentiment. Persistent headwinds such as weak Chinese demand, volatile currencies, and uncertainty over global interest rate paths remain key risks. Still, opportunities could arise in markets with strong policy support and steady earnings growth. Investors are likely to stay selective until inflation and monetary policy direction become clearer in the weeks ahead.