Asian equities opened Friday, September 26, on a mixed note as investors balanced currency pressures with sector-specific strength. While Japan’s Nikkei 225 pushed higher, declines in India’s Sensex and Hong Kong’s Hang Seng highlighted persistent caution. The weakening of both the yen and the Australian dollar also reflected ongoing concerns around monetary policy divergence and global demand.

Nikkei Extends Gains on Tech Support

Japan’s Nikkei 225 rose 0.27% to 45,754.93, with gains led by technology exporters benefiting from a weaker yen. The Japanese currency slipped 0.64% on the yen index, providing tailwinds for manufacturers and electronics giants who rely on overseas revenue. Investors remain attentive to the Bank of Japan’s stance, as its cautious approach to policy normalization has continued to weigh on the yen while boosting equity momentum.

Market watchers suggest that as long as the yen remains under pressure, export-driven sectors in Tokyo could maintain their upward trajectory. However, this dynamic may add to volatility if U.S. Treasury yields rise further, intensifying global currency imbalances.

Australian Market Stable Amid Currency Slide

The S&P/ASX 200 in Australia edged up 0.10% to 8,773.00, shrugging off a 0.65% decline in the Australian dollar index. The weaker currency has supported commodity-linked sectors and exporters, though it also underscores concerns about the Reserve Bank of Australia’s balancing act between inflation control and growth.

Investor focus remains on China’s demand outlook, given Australia’s close trade ties. The SSE Composite Index in Shanghai remained flat at 3,853.30, down a marginal 0.01%, indicating lingering uncertainty in the Chinese market despite ongoing policy support.

Sensex and Hang Seng Weigh on Regional Sentiment

India’s S&P BSE Sensex dropped 0.68% to 81,159.68, dragged lower by weakness in banking and consumer sectors. Investors are bracing for upcoming inflation data, which could shape expectations around the Reserve Bank of India’s next policy steps.

Meanwhile, Hong Kong’s Hang Seng slipped 0.13% to 26,484.68, extending a cautious tone in the region. The benchmark continues to struggle with capital outflows and concerns around Chinese corporate earnings, particularly in property and technology segments. South Korea’s KOSPI index also edged down 0.03%, reflecting a broadly muted tone across North Asian markets.

The mixed performance underscores how investors are navigating a delicate balance between local fundamentals, currency movements, and global monetary conditions.

The session highlights Asia’s ongoing divergence, where strong export-driven gains in Japan are offset by weakness in India and Hong Kong. Looking ahead, investors will monitor upcoming inflation prints, central bank policy signals, and currency dynamics to gauge whether today’s mixed momentum evolves into broader strength or heightened volatility in the weeks ahead.