Tech Optimism and Currency Stability Drive Positive Sentiment Across Asia

Asian stock markets kicked off Tuesday, June 10, 2025, on a high note, with major indices showing strong upward momentum. Boosted by technology sector recovery, export-driven optimism, and calming macroeconomic signals, the rally reflects a renewed appetite for risk across the region. With the exception of Australia, every major market is trading in the green.

Hang Seng Soars 1.63% on Chinese Tech Rebound

The Hang Seng Index in Hong Kong jumped 1.63% to 24,181.43, extending its recent recovery as Chinese technology and property stocks regain favor. Investors are reacting to positive earnings revisions, as well as rumors of policy easing from Beijing to stimulate key sectors of the economy.

Increased foreign investor interest and bargain hunting in the oversold tech space have been primary drivers of today’s rally. Names in e-commerce, fintech, and real estate are leading gains.

KOSPI Rallies 1.55% on AI and EV Supply Chain Optimism

South Korea’s KOSPI Composite Index gained 1.55% to reach 2,855.77, continuing its strong run in 2025. Market sentiment is being lifted by major Korean exporters — particularly semiconductor firms and battery manufacturers — which are expected to benefit from accelerating AI infrastructure investments and electric vehicle production globally.

Local analysts forecast sustained earnings momentum through Q2, especially from chipmakers tied to cloud data centers and mobile AI applications.

Nikkei 225 Climbs 0.92% as Industrial Giants Shine

Japan’s Nikkei 225 index rose 0.92% to 38,088.57, buoyed by strong performances from automotive and industrial conglomerates. Even with the Japanese Yen Index inching up 0.22% to 69.18, the export-heavy Nikkei remains supported by healthy demand from overseas markets.

Investor sentiment is also boosted by a stable domestic outlook and expectations that the Bank of Japan will maintain accommodative monetary policy.

China’s SSE Composite Posts Moderate Gains

The SSE Composite Index in Shanghai increased by 0.43% to 3,399.77. Although more subdued than its Hong Kong counterpart, the market is showing signs of gradual recovery, especially in infrastructure, consumer staples, and clean energy sectors.

Investors remain cautiously optimistic amid discussions of more targeted fiscal stimulus aimed at supporting local governments and unlocking household demand.

India’s Sensex Extends Record Rally

India’s S&P BSE SENSEX rose 0.31% to a new high of 82,445.21, maintaining its upward trajectory on the back of strong economic growth forecasts, low inflation, and robust foreign institutional inflows. Banking, IT services, and consumer discretionary sectors are among the top performers.

India continues to be one of the most favored emerging markets in Asia due to its macroeconomic stability and structural reform progress.

Australia’s ASX 200 Lags Behind the Region

Contrasting with the regional upswing, Australia’s S&P/ASX 200 dipped 0.27% to 8,515.70. Weakness in the mining, energy, and financial sectors weighed heavily on the index. However, the Australian Dollar Index strengthened 0.37% to 65.16, suggesting underlying resilience in the currency market.

Commodity price volatility and caution surrounding China’s industrial demand are limiting Australia’s upside potential in the short term.

Currency Market: Yen and Aussie Dollar Edge Up

• Japanese Yen Index: 69.18 (+0.22%) – A mild recovery supports import costs but raises questions about future BOJ intervention.
• Australian Dollar Index: 65.16 (+0.37%) – Gains despite equity weakness point to improved sentiment in currency markets.

Outlook: Regional Bulls in Control — For Now

With today’s broad-based rally, investors appear to be rotating back into Asian equities, especially in technology-heavy markets like South Korea and Hong Kong. While uncertainties persist globally, sentiment in Asia is currently driven by:

• Strengthening global demand for tech
• Currency stabilization
• Easing fears around central bank tightening

As U.S. economic data, G7 commentary, and regional earnings roll out later this week, market momentum may find additional catalysts or face fresh volatility.