Asian equities were mixed on Wednesday morning, as trading activity slowed across the region due to multiple holiday closures. Investors assessed the implications of a quieter session and monitored global market cues ahead of major economic releases later in the week.

Regional Overview: Strong KOSPI Gains, Weak Hang Seng Performance

Trading in Asia began on a cautious note, with some markets advancing while others slipped in light-volume conditions. The KOSPI Composite Index advanced 2.70 percent to 3,549.21, supported by momentum in semiconductor and financial stocks. However, the Seoul Stock Exchange and the KOSDAQ remained closed for the Chuseok Alternative Holiday, meaning gains were largely symbolic and based on futures activity rather than domestic trading.

In contrast, Hong Kong’s Hang Seng Index dropped 0.67 percent to 26,957.77, extending recent losses amid weakness in technology and real estate shares. Investors in Hong Kong faced thin liquidity as mainland Chinese traders were absent due to holiday closures, leading to limited cross-border inflows through the Stock Connect program.

China Closed for Mid-Autumn Festival

Mainland China’s markets, including the Shanghai Stock Exchange and Shenzhen Stock Exchange, were closed for the Mid-Autumn Festival. The Shanghai Composite Index last finished at 3,882.78, up 0.52 percent before the break, showing mild optimism as investors anticipated continued policy support for growth.

With both major Chinese exchanges on pause, trading volume across Asia fell sharply. Investors are expected to return later in the week to gauge the latest economic indicators and potential monetary easing signals from the People’s Bank of China. Market participants remain focused on whether Beijing will unveil new fiscal measures to counter soft export and property sector data once trading resumes.

Japan and Australia Show Divergent Paths

Japan’s Nikkei 225 gained a marginal 0.01 percent to 47,950.88, stabilizing after recent swings. The Japanese yen weakened 1.07 percent, signaling persistent downward pressure despite government efforts to curb volatility. Exporters benefited from the softer currency, though rising import costs continued to weigh on domestic sentiment.

Australia’s S&P/ASX 200 slipped 0.27 percent to 8,956.80, dragged lower by losses in energy and mining stocks. The Australian dollar also retreated 0.49 percent to 65.82, reflecting cautious positioning by traders ahead of upcoming U.S. inflation data and comments from the Federal Reserve. The resource-heavy index continues to respond to shifts in commodity prices, with iron ore and copper both edging lower overnight.

Investor Sentiment and Currency Trends

Overall sentiment across the region was mixed. While select markets showed resilience, trading volumes were muted due to overlapping holiday schedules. Currency movements added another layer of caution, as the weaker yen and Australian dollar reflected investor preference for defensive positions amid global uncertainty.

The Indian market stood out as a relative bright spot, with the S&P BSE SENSEX edging up 0.17 percent to 81,926.75. Gains in information technology and financial shares helped offset weakness in manufacturing and materials, signaling continued domestic investor confidence.

Looking ahead, the reopening of Chinese and Korean exchanges later this week will likely determine the next regional direction. Investors will be closely watching whether renewed trading in Shanghai and Seoul brings volatility or renewed optimism. Attention will also turn to U.S. inflation data and bond yield movements, both of which could influence capital flows into Asian markets. With multiple currencies under pressure and key economies on pause, the rest of the week may offer limited upside until full trading resumes across the region.