Asian markets traded broadly lower on Wednesday morning, October 15, as regional equities faced renewed pressure from currency volatility, global rate uncertainty, and cautious sentiment ahead of key U.S. inflation data later this week. A stronger yen and weak Chinese data weighed heavily on risk appetite, while investors assessed the implications of potential rate moves by major central banks in the coming months.

Nikkei Drops as Yen Strengthens and Tech Stocks Retreat

Japanese equities led the region’s declines, with the Nikkei 225 falling 2.58% to 46,847.32, reversing part of its recent rally to multi-decade highs. The Japanese yen index rose 0.32% to 65.89, signaling renewed demand for safe-haven currencies as traders scaled back on equity exposure. Export-heavy sectors, including electronics and auto makers, saw sharp pullbacks amid fears that a firmer yen could pressure corporate earnings.
Market participants also cited technical overbought conditions after weeks of strong performance, leaving the Nikkei vulnerable to profit-taking. Meanwhile, investors are increasingly watching for signals from the Bank of Japan on potential policy normalization as inflation remains persistent.

Weakness in China and Hong Kong Adds to Regional Pressure

Mainland Chinese equities continued to struggle, with the Shanghai Composite Index (000001.SS) slipping 0.62% to 3,865.23. Sentiment remained cautious amid ongoing worries over sluggish industrial production and property-sector fragility. In Hong Kong, the Hang Seng Index tumbled 1.73% to 25,441.35, dragged down by sharp losses in technology and real estate shares.
Foreign investor flows have remained muted as the market awaits fresh policy support from Beijing. Analysts noted that without stronger fiscal or monetary stimulus, the region’s recovery may remain uneven heading into year-end.

Australia and South Korea Show Resilience Amid Regional Volatility

Elsewhere, the S&P/ASX 200 rose 0.19% to 8,899.40, supported by gains in the mining and energy sectors as commodity prices remained relatively stable. However, the Australian dollar index slipped 0.51% to 64.85, reflecting concerns about global growth and lower demand from China.
In South Korea, the KOSPI Composite Index declined 0.63% to 3,561.81, weighed down by chipmaker weakness and softer export outlooks. The combination of high U.S. Treasury yields and geopolitical tensions in East Asia has continued to limit risk appetite among institutional investors.

The S&P BSE Sensex in India also edged lower by 0.36% to 82,029.98, as investors locked in profits after recent record-breaking sessions.

Looking ahead, traders will be closely watching the upcoming U.S. consumer price index (CPI) data and commentary from Federal Reserve officials for clues about the pace and timing of potential rate adjustments. Persistent inflation or hawkish rhetoric could trigger further risk-off sentiment across Asian equities. Conversely, any signs of easing monetary conditions may offer support to regional markets and currencies.
Investors should monitor currency movements, bond yield fluctuations, and upcoming corporate earnings releases as key drivers of near-term direction in the Asia-Pacific region.