Strong Start to the Week Across Asia

Asian equities opened the week on a positive note on Monday, September 8, with major indices across the region trading higher in morning action. Gains were led by Hong Kong and mainland China, while Japan’s Nikkei continued its upward trajectory to stay near record territory. Currency markets also reflected renewed investor optimism, with both the Japanese yen and the Australian dollar strengthening against the U.S. dollar.

The positive sentiment comes as investors weigh a combination of improving regional growth indicators, stabilized commodity prices, and cautious optimism over global monetary policy. Market participants are looking ahead to U.S. economic data releases later this week, which could provide further direction for risk assets.

Hong Kong and Shanghai Lead the Gains

Hong Kong’s Hang Seng Index advanced +1.43% to 25,417.98, making it the strongest performer in the region this morning. The rebound in technology and property stocks contributed to the rally, with investor sentiment boosted by hopes of policy support from Beijing.

Meanwhile, the SSE Composite Index in Shanghai climbed +1.24% to 3,812.51, supported by strong trading volumes in financial and industrial names. Analysts suggest that expectations for continued fiscal support in China are helping sustain the momentum, even as global investors remain cautious about longer-term structural challenges.

Nikkei and Kospi Show Measured Strength

Japan’s Nikkei 225 rose +1.03% to 43,018.75, maintaining its position near record highs. Exporters and financial stocks gained ground as the yen strengthened modestly, though the currency’s rise was not sharp enough to weigh on corporate earnings prospects.

In South Korea, the Kospi Composite Index inched up +0.13% to 3,205.12. The modest gain reflected mixed sentiment in the technology sector, as investors balanced strong export data with concerns about slowing semiconductor demand in global markets.

Currency Moves Add Momentum

Regional currencies posted gains against the U.S. dollar, supporting overall risk appetite in Asia.

• Japanese Yen Index: up +0.76% at 67.84
• Australian Dollar Index: up +0.68% at 65.61

The yen’s safe-haven appeal remained intact, while the Australian dollar benefited from resilient commodity demand and improving domestic economic data. Analysts note that the broader weakness in the U.S. dollar has created a supportive backdrop for Asian currencies, which in turn encourages capital inflows into regional equity markets.

Australia and India Show Diverging Trends

In Australia, the S&P/ASX 200 [XJO] gained +0.51% to 8,871.20, lifted by mining and banking stocks. Optimism around iron ore prices and resilient domestic consumption have kept investor confidence intact.

By contrast, India’s S&P BSE Sensex edged slightly lower, slipping -0.01% to 80,710.76. The flat performance reflected profit-taking after recent highs, with investors awaiting key inflation and industrial output data later this week for direction.

Outlook for the Rest of the Day

The firm start to the week suggests Asian markets are set for a cautiously optimistic Monday session. Investors will continue to monitor:

• Global central bank commentary, particularly from the U.S. Federal Reserve.
• Chinese economic policy updates and potential fiscal stimulus measures.
• Movements in commodity prices, especially energy and metals, which remain critical for Australia and broader Asia.
• Regional trade data that could provide clues about supply chain resilience.

With major indices trending higher and regional currencies showing strength, the near-term outlook leans positive. However, analysts caution that external risks — including U.S. inflation data and European growth signals — could quickly shift sentiment later in the week.