Asian markets opened Friday, November 21, with broad weakness as investors reacted to heightened global volatility and cautious sentiment ahead of key economic releases from the United States and Europe. Early trading showed a clear divergence across the region, with sharp losses in Japan and Korea, modest gains in India, and flat trading in Hong Kong.

Nikkei 225: Japan Faces Significant Morning Losses

Japan’s Nikkei 225 fell 2.22 percent to 48,719.90, extending recent volatility in the Tokyo market. The Japanese Yen Index declined 0.23 percent to 63.50, putting additional pressure on exporters and technology shares. Market participants are closely monitoring potential signals from the Bank of Japan, with any policy shift likely to impact both the currency and equity valuations. Weak global risk sentiment and cautious positioning ahead of the weekend have contributed to the morning decline.

KOSPI Composite Index: South Korea Experiences Sharp Decline

The KOSPI Composite Index dropped 3.39 percent to 3,869.18, marking the steepest losses in the region this morning. Broad-based selling affected semiconductors, internet platforms, and major industrial stocks. Accelerated foreign investor outflows reflect concerns about slowing global demand and elevated geopolitical risk. Korea’s market remains highly sensitive to macroeconomic developments in the United States and China, both of which are critical drivers for its export-oriented economy.

SSE Composite Index and Hang Seng: China and Hong Kong Cautious

China’s SSE Composite Index declined 0.40 percent to 3,931.05 as investors continued to weigh concerns over the strength of the country’s recovery. Weak property sector activity and uneven industrial output have contributed to cautious sentiment. Market participants are awaiting guidance ahead of upcoming government policy meetings, which could clarify growth priorities and stimulus measures for the next year.

Hong Kong’s Hang Seng Index was unchanged at 25,835.57, stabilizing after several volatile sessions. While the lack of movement provides temporary relief, investor caution remains high due to ongoing geopolitical tensions, technology-sector challenges, and global capital flow considerations. Traders continue to favor stocks with predictable earnings and defensive characteristics.

SENSEX and ASX 200: India Maintains Momentum While Australia Retreats

India’s S&P BSE SENSEX rose 0.52 percent to 85,632.68, benefiting from strong domestic demand and resilient corporate earnings. Institutional inflows continue to support the market, providing a buffer against broader regional volatility. Investors are focusing on sectors poised to benefit from domestic consumption and infrastructure growth, which have helped maintain investor confidence.

Australia’s S&P/ASX 200 fell 1.25 percent to 8,445.40, with selling concentrated in financials, mining, and energy sectors. The Australian Dollar Index declined 0.52 percent to 64.43 as softer commodity demand projections and uncertainty surrounding China, Australia’s largest export partner, weighed on market sentiment. Currency and commodity volatility remain key factors influencing sector performance.

Regional Developments

Overall trading activity across the region is slightly lighter due to local observances. Notably, the Mongolia Stock Exchange is closed today in observance of Great Chinggiss Khaan’s Birthday. While this has minimal impact on broader market liquidity, it contributes to quieter trading conditions in frontier markets. Across Asia, currency movements, particularly the weaker yen and Australian dollar, continue to influence investor positioning and sector rotation.

Market Outlook

Looking ahead, investors will be focused on economic releases from the United States and Europe later in the day, which could shape sentiment heading into the weekend. Currency fluctuations, central bank signals, and geopolitical developments remain critical factors for regional equities. While pockets of resilience exist, particularly in India, elevated volatility and macro uncertainty are likely to keep markets sensitive. Investors are expected to continue weighing domestic fundamentals against global headwinds as they adjust positions for the near term.