Highlights:

– KOSPI led gains with a 0.94% rise, boosted by tech strength.
– Chinese and Hong Kong markets slipped, with Shanghai down 0.45%.
– Yen weakness intensified, sliding 0.85% against major currencies.

Asian equities opened Wednesday, September 3, on a mixed note, reflecting diverging growth signals across the region. Investors are closely tracking currency moves and macroeconomic headwinds, with some markets showing resilience while others face renewed selling pressure. The tone remains cautious as global traders await U.S. economic updates later in the week.

South Korea Leads Regional Gains

The KOSPI Composite Index surged 0.94% to 3,172.35, outperforming regional peers. Gains were driven largely by technology and semiconductor stocks, which continue to benefit from global demand for AI-related hardware. Market sentiment was further supported by strong foreign inflows, as a weaker won enhanced the appeal of Korean equities.

Japan Extends Modest Rally Amid Yen Weakness

Japan’s Nikkei 225 edged up 0.29% to 42,310.49, marking another session of incremental gains. The weaker Japanese yen, which fell 0.85% to 67.42 on the index, provided tailwinds for exporters. Automakers and electronics manufacturers were among the key beneficiaries, though concerns remain that persistent currency weakness could invite government intervention. Investors are also eyeing the Bank of Japan’s policy stance as inflation dynamics evolve.

China and Hong Kong Struggle to Gain Traction

On the mainland, the Shanghai Composite (000001.SS) dropped 0.45% to 3,858.13, while Hong Kong’s Hang Seng Index declined 0.47% to 25,496.55. Property sector concerns and muted consumer demand continue to weigh on sentiment. Despite government pledges of targeted support, investors remain cautious amid sluggish credit growth and uneven recovery in retail spending.

India and Australia Diverge

India’s S&P BSE Sensex slipped 0.26% to 80,157.88 as profit-taking hit banking and consumer sectors following recent record highs. Analysts note that while India’s long-term growth prospects remain robust, stretched valuations are prompting short-term corrections.

Meanwhile, Australia’s S&P/ASX 200 (XJO) fell 0.30% to 8,900.60. The Australian dollar index also weakened, down 0.37% to 65.15, reflecting softer commodity demand from China and investor concerns over domestic inflationary pressures. The dual decline underscores the region’s sensitivity to global trade and resource cycles.

Outlook

Asian markets are expected to remain volatile through midweek, with investors balancing regional fundamentals against global developments. Currency markets, particularly the yen and Australian dollar, will play a critical role in shaping equity flows. Looking ahead, traders will closely monitor upcoming U.S. economic data and central bank commentary for signals on the global interest rate trajectory. For now, Asia remains a patchwork of cautious optimism and lingering downside risks.