Asian markets opened the week on a mixed note during Monday’s morning session, with investors selectively rotating into pockets of strength while remaining cautious toward export-heavy and rate-sensitive markets. The trading tone reflects a balance between optimism around regional growth resilience and lingering concerns tied to currencies, global interest rates, and capital flows.

Hong Kong and Mainland China Extend Upward Momentum

Equities in Greater China showed constructive momentum early in the session, with Hong Kong’s Hang Seng index rising 1.75 percent to trade near 25,977. Gains were broad-based, supported by renewed interest in technology, consumer, and financial stocks. Investor sentiment appears buoyed by expectations that policymakers may continue to support growth through targeted measures, particularly as domestic demand shows signs of stabilization.

Mainland China’s SSE Composite Index also traded higher, advancing 0.41 percent to around 3,889. While gains were more measured compared to Hong Kong, the positive tone suggests investors are cautiously rebuilding exposure following a period of volatility. Market participants continue to monitor credit conditions, property sector developments, and the pace of industrial activity for confirmation that the recovery is becoming more durable.

India Remains Firm While Australia Slips

India’s equity market remained a regional bright spot, with the S&P BSE Sensex climbing 0.53 percent to approximately 85,268. The index’s resilience reflects ongoing confidence in India’s domestic growth story, supported by strong consumption trends, infrastructure investment, and relatively stable macro fundamentals. Financials and industrials contributed to the upside, reinforcing India’s status as a preferred destination for long-term capital within emerging Asia.

In contrast, Australia’s S&P/ASX 200 slipped 0.77 percent to 8,631. The pullback comes amid pressure on resource-linked stocks and concerns around global demand for commodities. Additionally, the Australian Dollar Index edged lower by 0.19 percent, signaling softer currency sentiment that may reflect expectations of a more cautious policy outlook or reduced carry appeal in the near term.

Japan and South Korea Under Pressure as Yen Weakness Persists

Japanese equities underperformed during the morning session, with the Nikkei 225 falling 1.19 percent to 50,230. The decline coincided with continued softness in the Japanese Yen Index, which slipped 0.20 percent. While a weaker yen can support exporters over time, persistent currency depreciation also raises concerns around imported inflation and capital outflows, weighing on overall market confidence.

South Korea’s KOSPI Composite Index recorded the sharpest decline among major Asian markets, dropping 1.75 percent to 4,094. The sell-off reflects sensitivity to global technology cycles and foreign investor positioning, particularly as currency movements and external demand remain uncertain. Semiconductor and export-oriented stocks were among the laggards, underscoring the market’s vulnerability to shifts in global risk sentiment.

Outlook: What Investors Are Watching Next

Looking ahead, investors across Asia are likely to remain highly attentive to currency dynamics, global interest rate expectations, and incoming economic data from both the region and major developed markets. For Israeli and global investors, the divergence between domestically driven markets such as India and more export-dependent economies like Japan and South Korea presents both risks and selective opportunities. Key factors to monitor include policy signals from central banks, movements in the U.S. dollar, and any signs of acceleration or slowdown in regional growth indicators. As the week unfolds, markets may continue to trade tactically, with volatility driven by shifts in macro expectations rather than broad directional conviction.