Asian equity markets closed Monday, December 15, 2025, under broad selling pressure as investors turned defensive following last week’s rally. Risk appetite faded across the region, with nearly all major benchmarks ending the session in negative territory. Concerns around global growth momentum, currency weakness, and upcoming central bank signals contributed to a cautious tone as markets opened the new week.

The pullback was widespread, affecting both developed and emerging Asian economies. Export-heavy markets faced additional pressure as regional currencies softened, while investors reassessed valuations after recent gains. Technology, financials, and industrial stocks were among the hardest hit, reflecting a shift toward capital preservation.

Hong Kong and South Korea Lead Declines as Selling Intensifies

Hong Kong’s Hang Seng Index fell 1.34 percent to 25,628.82, extending its recent volatility as weakness in technology, property, and financial stocks accelerated. Investor confidence remained fragile amid ongoing concerns about China’s economic recovery and subdued capital inflows. Large-cap internet and real estate names led the decline, underscoring persistent structural challenges facing the market.

South Korea’s KOSPI Composite Index posted the sharpest drop in the region, sliding 1.84 percent to 4,090.59. The selloff was driven primarily by declines in semiconductor and battery stocks, which remain sensitive to global demand expectations and valuation concerns. Despite Korea’s strong year-to-date performance, Monday’s move reflected profit-taking and a broader reduction in risk exposure.

Analysts noted that Korea’s equity market remains highly reactive to shifts in global sentiment, particularly around technology spending cycles and U.S. interest rate expectations.

Japan, China, and Australia Retreat as Currency Pressure Mounts

Japan’s Nikkei 225 declined 1.31 percent to 50,168.11, reversing part of last week’s gains. The downturn coincided with a 0.20 percent drop in the Japanese yen, which failed to provide support to exporters amid broader market weakness. Automakers, industrials, and electronics stocks all came under pressure as investors moved to lock in profits.

China’s SSE Composite Index slipped 0.55 percent to 3,867.92, weighed down by renewed concerns over domestic demand and the ongoing drag from the property sector. While policymakers have introduced incremental support measures, markets remain unconvinced about the pace and durability of China’s recovery. Financials and consumer-related stocks led the decline.

Australia’s S&P/ASX 200 fell 0.72 percent to 8,635.00, with losses concentrated in mining, banking, and energy stocks. The Australian Dollar Index weakened 0.19 percent, reflecting softer commodity sentiment and cautious global positioning. Although Australia’s economic fundamentals remain relatively stable, the market remains sensitive to global risk cycles.

India Shows Relative Resilience but Ends Slightly Lower

India’s S&P BSE Sensex edged down 0.07 percent to 85,211.51, outperforming most regional peers despite closing marginally lower. The muted move reflected a balance between profit-taking and continued confidence in India’s domestic growth outlook. Financials and consumer stocks were mixed, while IT shares saw moderate selling pressure.

Market participants continue to view India as one of Asia’s more resilient economies, supported by steady consumption, infrastructure spending, and strong corporate earnings. However, global volatility and foreign capital flows remain key variables influencing short-term market direction.

Outlook: Markets Watch Central Bank Signals and Global Growth Indicators

Looking ahead, investors across Asia will closely monitor upcoming central bank commentary, particularly from the U.S. Federal Reserve and the Bank of Japan, for guidance on interest rate policy and liquidity conditions. Currency movements will remain a critical factor for export-driven economies, while China’s next round of economic data will be closely scrutinized for signs of stabilization. Although Monday’s broad decline signals a cautious start to the week, selective opportunities may emerge in markets with strong domestic fundamentals as investors recalibrate positioning amid evolving global conditions.