Asian markets opened the Friday session with a measured tone, reflecting a balance between cautious optimism and lingering macroeconomic uncertainty. With currencies fluctuating and major indices showing mixed direction, investors are positioning ahead of month-end flows and upcoming global economic data. The session so far highlights resilience in Chinese and Indian benchmarks while Japanese and Korean markets face early selling pressure.

China and India Lead Modest Gains in Early Trade

The SSE Composite posted a gain of 0.29 percent in morning dealings, extending the stabilizing trend seen throughout the week. Investors continue to respond positively to signs of policy support and improving liquidity conditions, especially as Beijing maintains its commitment to stimulating domestic demand. Market breadth remains constructive, suggesting that traders are rotating back into sectors tied to consumption and industrial recovery.

In India, the S&P BSE Sensex increased by 0.13 percent, adding to its recent upward trajectory. The Indian market continues to benefit from strong macroeconomic fundamentals, particularly rising foreign inflows and solid corporate earnings. Consumer-facing sectors and financials are showing relative strength, reinforcing the narrative that India remains one of the region’s more resilient growth stories going into 2025.

Japan and South Korea Struggle Amid Currency Pressure

Japan’s Nikkei 225 slipped 0.15 percent in early trade as the weakening yen weighed on sentiment. The Japanese Yen Index declined 0.30 percent, signaling ongoing concerns about yield differentials and policy divergence. A softer yen can support export-driven names, but it also amplifies import costs, creating a complex backdrop for corporate profitability. Investors remain cautious, particularly ahead of inflation figures that could influence expectations for the Bank of Japan’s next steps.

South Korea’s KOSPI Composite Index recorded a sharper decline of 0.73 percent. Tech-heavy sectors are under pressure as traders reassess global demand for semiconductors and electronics. Additionally, geopolitical uncertainties in the region continue to cast a shadow over risk appetite. Despite the pullback, Korean equities have shown resilience recently, and investors are looking for catalysts—such as improved export data or stabilization in the won—to restore momentum.

Australia Posts Mild Gains as the Aussie Dollar Strengthens

The Australian market opened slightly higher, with the S&P/ASX 200 adding 0.07 percent. Gains were modest, but the index remains supported by stable commodity demand and improving investor sentiment around the mining sector. The Australian Dollar Index rose a notable 0.80 percent, reflecting stronger demand for risk-sensitive currencies and optimism surrounding regional trade flows. However, a stronger Aussie dollar could introduce headwinds for some export-focused industries if the upward trend persists.

Hong Kong’s Hang Seng Index also rose by 0.07 percent, continuing its gradual recovery as investors rotate back into undervalued technology and financial names. Positive signals from mainland China regarding policy consistency have provided some relief to local markets, though overall momentum remains fragile.

Outlook for the Remainder of the Session

As the session progresses, investors will be closely monitoring currency movements, macroeconomic releases, and any policy signals from regional governments. With global markets still digesting inflation trends and adjusting expectations for future Federal Reserve decisions, volatility may increase heading into the afternoon trade. Key factors to watch include shifts in risk appetite, sector rotations, and any indications of month-end portfolio adjustments. The coming days could offer both opportunities and challenges as markets navigate economic data, geopolitical developments, and evolving monetary expectations.