Asian markets traded mixed on Tuesday morning, November 4, as investors navigated a cautious start to the week amid shifting global sentiment and renewed focus on central bank policies. Gains in Chinese and Hong Kong equities helped offset declines in Japan and South Korea, while Australia and India managed to stay largely steady. Regional trading volumes remained moderate, with some markets seeing subdued participation following global volatility.

Hong Kong and China Extend Gains on Stimulus Expectations

Hong Kong’s Hang Seng Index climbed 0.97% to 26,158.36, leading regional advances amid renewed optimism about further economic support from Beijing. Mainland China’s SSE Composite Index also gained 0.55% to 3,976.52, buoyed by strength in technology and financial shares.

Investors were encouraged by speculation that Beijing may roll out additional fiscal measures to bolster growth as the year-end approaches. Sentiment was also supported by solid manufacturing and service data, suggesting that recent stimulus steps have started to take effect. Foreign inflows into Hong Kong-listed firms continued, reflecting growing confidence in China’s near-term recovery trajectory.

Japan and South Korea Weaken as Exporters Lose Momentum

Japan’s Nikkei 225 slipped 0.36% to 52,223.21, dragged lower by declines in technology and export-oriented stocks. The Japanese yen index weakened 0.16% to 64.83, highlighting ongoing concerns about currency volatility. Despite strong corporate earnings from some major firms, traders remained wary ahead of potential monetary policy adjustments from the Bank of Japan.

In South Korea, the KOSPI Composite Index dropped 0.98% to 4,180.46, led by losses in semiconductor and automotive sectors. Investors cited weaker demand forecasts from global chipmakers and slower export growth as primary headwinds. Local sentiment was also dampened by reduced foreign investor activity, contributing to the downward pressure.

Australia and India Show Stability Amid Global Uncertainty

Australia’s S&P/ASX 200 fell 0.63% to 8,839.10, pressured by declines in mining and energy stocks following softer commodity prices overnight. The Australian Dollar Index edged lower by 0.09% to 65.36, reflecting a cautious stance among traders. Despite the weakness in resource shares, gains in banking and healthcare stocks helped limit broader market losses, signaling resilience in domestic sectors.

India’s S&P BSE SENSEX ticked up 0.05% to 83,978.49 as financial and consumer goods shares provided modest support. Investors remained optimistic about the ongoing corporate earnings season and steady macroeconomic conditions. The SENSEX’s muted gain underscored the market’s stable positioning amid global headwinds and moderating foreign inflows.

Regional Context and Holiday Impact

Trading activity across Asia was somewhat lighter than usual, with some cross-border flows subdued. The Moscow Stock Exchange remained closed for Russia’s Unity Day holiday, slightly reducing global liquidity and dampening volume in energy-related trades. While this had minimal direct effect on Asian indices, it contributed to the region’s cautious tone early in the session.

Forward Outlook: Monitoring Economic Data and Policy Signals

Looking ahead, Asian investors will focus on fresh data releases from China and Japan, as well as signals from global central banks regarding inflation and growth prospects. The interplay between currency movements, particularly the yen’s softness and the dollar’s strength, will remain central to regional equity performance.

Market watchers are also keeping an eye on commodity prices and geopolitical developments, which could influence trade sentiment and capital flows in the coming days. As the week progresses, the reopening of global markets, including Russia’s, could inject renewed momentum into regional trading. Investors remain alert for potential policy updates and fiscal signals that could shape Asia’s market direction through mid-November.