Asian markets were mixed on Friday morning, November 7, as investors digested a blend of corporate earnings, currency moves, and global rate expectations. Strong buying in Hong Kong’s tech and property sectors lifted regional sentiment, but losses in Japan and South Korea highlighted caution ahead of key U.S. inflation data expected next week.

Hong Kong and China Lead Regional Gains

The Hang Seng Index surged 2.12% to 26,485.90, driven by renewed optimism in China’s economic outlook and a rebound in large-cap technology shares. Investors welcomed reports of fresh liquidity injections from the People’s Bank of China, boosting confidence in the recovery trajectory of the mainland economy.

The SSE Composite Index in Shanghai also advanced 0.97% to 4,007.76, marking its strongest start to the month since September. Gains were led by consumer discretionary and financial stocks, which benefitted from expectations of sustained policy support. Market participants noted improving foreign inflows into Chinese equities after several weeks of outflows, suggesting sentiment may be turning cautiously positive.

Analysts at SKN Finance noted that while Chinese markets appear to be stabilizing, investor confidence remains fragile due to weak export data and ongoing property-sector challenges. Still, the rebound in Hong Kong’s market has drawn attention from regional funds seeking value plays after a prolonged period of underperformance.

Japan and South Korea See Profit-Taking Pressure

Japan’s Nikkei 225 fell 1.37% to 50,184.60, reversing part of its recent rally as investors booked profits ahead of the weekend. The decline was led by industrials and technology exporters, weighed down by a stronger yen. The Japanese Yen Index climbed 0.69% to 65.33, reflecting a modest safe-haven bid amid global market uncertainty.

Market strategists pointed out that despite today’s pullback, the Nikkei remains near multi-decade highs, supported by strong corporate earnings and resilient domestic demand. However, investors are increasingly cautious about the potential impact of yen appreciation on exporters’ profitability, especially as speculation mounts that the Bank of Japan could gradually adjust its yield-curve control policy.

In South Korea, the KOSPI Composite Index slipped 0.29% to 4,014.76 as semiconductor stocks weakened. While chip demand remains solid, traders took some risk off the table following recent gains in the tech sector. Market participants expect volatility to remain elevated as investors weigh global supply-chain developments and demand signals from major clients in the U.S. and China.

Australia and India Under Modest Pressure

Australia’s S&P/ASX 200 edged down 0.07% to 8,822.40, with mining and energy stocks trading mixed amid fluctuating commodity prices. The Australian dollar weakened 0.38% to 64.80, reflecting subdued investor appetite for risk assets. Analysts attributed the decline to cautious sentiment ahead of next week’s U.S. CPI data, which could influence the Reserve Bank of Australia’s policy outlook.

India’s S&P BSE SENSEX declined 0.18% to 83,311.01, pausing after several sessions of gains. Financials and consumer goods stocks led the losses, while select IT and infrastructure names provided support. Investors remain focused on corporate earnings momentum and potential fiscal policy adjustments ahead of India’s budget discussions later this quarter.

Outlook: Focus on Policy Clues and Currency Dynamics

As the Asian session continues, traders are keeping a close watch on currency moves and central bank commentary across the region. The strengthening yen could trigger further corrections in Japanese equities, while renewed optimism in China may continue to drive selective buying in Hong Kong and mainland markets.

Global sentiment will hinge on next week’s U.S. inflation data, which could shape expectations for the Federal Reserve’s next rate move and ripple across Asian currencies and capital flows. Investors are also monitoring energy prices and geopolitical developments in the Middle East for potential market implications.

Overall, while Asia’s mixed performance reflects a cautious tone, underlying resilience in China and strong corporate fundamentals in Japan and India suggest the region remains positioned for stability heading into the final weeks of the year.