Asian markets opened the week on a mixed note this Monday, November 3, as investors balanced strong gains in Japan against declines in China and Hong Kong. With Japan celebrating Culture Day and several markets operating with reduced volumes, attention turned to diverging growth trajectories across Asia. Russia’s Moscow Exchange remained closed for a public holiday, contributing to a quieter trading session across the broader region.

Japan’s Nikkei Jumps Despite Holiday Calm

Japan’s Nikkei 225 surged 2.12% to 52,411.34, supported by positive earnings results and robust demand for technology shares. The Japanese Yen Index remained steady at 64.94 (+0.07%), indicating a stable currency backdrop as traders look ahead to the Bank of Japan’s policy guidance later this month. Although the Tokyo Stock Exchange is closed for Culture Day, optimism carried through from last week’s sessions, reflecting expectations of continued growth in corporate profits and exports.

Foreign investors have been steadily increasing exposure to Japanese equities, drawn by improving corporate governance standards and attractive valuations relative to Western markets. Analysts suggest that Japan’s resilience against global headwinds, combined with policy support, could sustain the rally in coming weeks.

China and Hong Kong Weighed Down by Property Worries

In contrast, Chinese and Hong Kong stocks struggled to gain traction as investors reacted to fresh signs of weakness in the property market and slower factory activity. The SSE Composite Index declined 0.81% to 3,954.79, while the Hang Seng Index dropped 1.43% to 25,906.65. Persistent concerns about debt levels and consumer confidence have continued to pressure sentiment, especially within the financial and real estate sectors.

Despite recent government measures to stabilize the housing market, confidence among developers and homebuyers remains weak. Liquidity injections have yet to spur meaningful recovery, and investors are closely watching for any new fiscal or monetary policy announcements ahead of this week’s key Chinese data releases.

Regional Currencies and Stocks Diverge

Elsewhere in the region, South Korea’s KOSPI Composite Index rose 1.38% to 4,164.05, lifted by semiconductor and EV battery stocks that benefited from strong export demand. Meanwhile, Australia’s S&P/ASX 200 slipped 0.45% to 8,842.00, as miners and energy stocks lagged following weakness in commodity prices. The Australian Dollar Index edged down 0.15% to 65.42, reflecting cautious sentiment toward resource-linked currencies.

India’s S&P BSE SENSEX fell 0.55% to 83,938.71, with profit-taking seen after a strong run in October. Investors remain focused on upcoming corporate earnings and inflation data that could shape expectations for the Reserve Bank of India’s next policy decision.

Forward Outlook: Policy and Growth Signals to Drive Momentum

Looking ahead, Asian investors will closely watch central bank communications for signs of policy adjustments as inflation trends evolve. The Nikkei’s sharp rise points to optimism in Japan’s corporate sector, while ongoing weakness in China and Hong Kong suggests regional divergence may continue. With Japan’s Culture Day and Russia’s market holiday limiting participation today, trading volumes are likely to stay subdued. The next catalyst for markets could come from U.S. economic data and China’s trade figures later this week, which may offer clearer direction for Asia’s equity and currency outlook.