Asian markets ended Monday, November 3 (Israel time), on a mixed note, as regional investors weighed improved earnings sentiment in India against lingering global uncertainties. While India’s benchmark indices extended their upward momentum, several major markets — including Japan, South Korea, and Hong Kong — faced mild pressure from weaker risk appetite and cautious trading ahead of key economic data releases later in the week.

Indian Markets Shine on Strong Domestic Fundamentals

India’s S&P BSE SENSEX closed higher by 0.61% at 85,192.55 points, marking a continuation of its steady rally. Gains were led by financials, consumer goods, and information technology sectors, reflecting investor optimism around robust domestic demand and favorable corporate earnings outlooks.

Market analysts noted that India’s sustained growth story continues to attract both institutional and retail investors. Stable inflation data, combined with expectations for moderate monetary policy from the Reserve Bank of India, have reinforced the SENSEX’s resilience compared to regional peers.

The broader market sentiment in India remained upbeat, supported by positive earnings results and strong fund inflows. Investors also reacted favorably to ongoing infrastructure and digitalization initiatives, which are seen as key drivers of medium-term economic expansion.

East Asia Struggles with Renewed Volatility

Across the rest of Asia, sentiment was more restrained. Japan’s Nikkei 225 slipped 0.34% to 48,537.70, as exporters came under pressure from a stronger yen earlier in the day and uncertainty surrounding U.S. demand. Despite mild losses, Japanese equities remain near multi-decade highs, supported by corporate reform momentum and capital efficiency initiatives.

South Korea’s KOSPI Composite Index fell 0.61% to 3,929.51, dragged by declines in semiconductor and consumer electronics shares. The weakness was largely attributed to global technology sector softness and geopolitical tensions weighing on investor confidence.

Meanwhile, Hong Kong’s Hang Seng Index dropped 0.38% to 25,830.65, continuing to struggle under the weight of subdued real estate and financial sectors. In contrast, mainland China’s SSE Composite Index gained 0.18% to 3,946.74, as signs of policy stabilization and state-backed support lent limited optimism to investors seeking recovery momentum.

Currency Movements Reflect Cautious Sentiment

In currency trading, performance was mixed as traders adjusted positions ahead of key global economic updates. The Australian Dollar Index rose 0.22% to 65.08, supported by modest gains in commodity prices and expectations of stable monetary policy from the Reserve Bank of Australia.

The Japanese Yen Index edged down 0.15% to 64.32, reflecting ongoing yield differentials between Japan and the United States. The yen’s slight weakness provided marginal support to Japanese exporters but failed to offset broader equity losses.

Currency traders across Asia remain alert to potential volatility stemming from upcoming U.S. inflation data and central bank commentary, both of which could influence near-term exchange-rate dynamics.

Forward Outlook: Mixed Regional Sentiment and Key Data Ahead

The contrasting performance across Asian markets reflects an environment of measured optimism tempered by global caution. Investors are likely to monitor upcoming U.S. inflation and trade data, as well as regional central bank guidance, for signs of how global monetary policy may evolve in the final quarter of the year.

Potential opportunities may emerge in markets with strong domestic fundamentals, such as India and select Southeast Asian economies, where local demand continues to underpin growth. However, risks remain — particularly from renewed global supply-chain disruptions, slowing export demand, and persistent geopolitical uncertainty.

As the week unfolds, traders are expected to stay nimble, balancing optimism in local markets with vigilance toward macroeconomic shifts that could redefine Asia’s investment landscape heading into the year’s end.