Losses were steeper in South Korea. The Kospi fell 1.32%, leading regional declines, and the small-cap Kosdaq edged lower. The retreat came despite data showing South Korea’s economy expanded at its quickest pace in more than a year during the third quarter. Preliminary figures released by the Bank of Korea indicated that gross domestic product grew faster than analysts had forecast, supported by resilient exports and firm domestic demand.
Australia’s S&P/ASX 200 slipped 0.22% in early trade, dragged by weakness in financials and materials. In Greater China, Hong Kong’s Hang Seng index dipped 0.1%, and the mainland’s CSI 300 fell 0.39%. Construction-equipment maker Sany Heavy Industry debuted in Hong Kong at its offer price after raising HKD 12.36 billion (approximately USD 1.59 billion) in one of this year’s largest local listings.
The soft tone in Asia contrasted with Monday’s performance in the United States, where all three major benchmarks finished at record closings. The S&P 500 advanced 1.23% to 6,875.16, notching its first settlement above the 6,800 mark. The Nasdaq Composite rose 1.86% to 23,637.46, buoyed by gains in Nvidia and other semiconductor names, while the Dow Jones Industrial Average added 337.47 points, or 0.71%, to 47,544.59.
Market participants are assessing a dense calendar of risk events scheduled for the remainder of the week. Several U.S. technology giants will release quarterly earnings, the Federal Open Market Committee will announce its latest policy decision on Wednesday, and negotiators from Washington and Beijing continue discussions aimed at reaching a limited trade agreement. Updated information on the Fed’s policy stance can be found directly on the central bank’s website (FederalReserve.gov).
Currency markets were relatively steady. The Japanese yen traded near 148 per dollar, hardly reacting to the impending Trump–Takaichi encounter. Australia’s dollar weakened slightly, moving below 0.65 U.S. cents, while the Korean won hovered around 1,320 per dollar after the GDP release. Benchmark U.S. Treasury yields were little changed during Asian hours, holding near recent five-month highs.
Analysts noted that investors remain cautious until there is clarity on potential policy signals from the Tokyo summit, where critical minerals cooperation and regional security are expected to dominate discussions. Any announcement perceived as supportive of supply-chain diversification could influence shares of battery-materials suppliers and rare-earth producers when trading resumes in North America.
Across commodity markets, Brent crude held just under USD 92 a barrel amid concerns about demand prospects in China, and gold hovered around USD 2,040 an ounce, reflecting a modest bid for safety ahead of the Fed meeting and the high-level political talks in Japan.
With the Nikkei still up more than 15% year-to-date, strategists caution that valuations leave little room for disappointment. Conversely, some portfolio managers argue that stronger corporate earnings projections and the possibility of policy coordination between Washington and Tokyo could extend the rally if this week’s events conclude without negative surprises.
Trading volumes were subdued in several markets as investors awaited fresh catalysts. Exchanges in both India and Singapore reported turnover below the 20-day average, underscoring the defensive positioning seen across the region on Tuesday.
The agenda later in the day includes household spending figures from Japan, preliminary industrial production data from South Korea, and a speech by Reserve Bank of Australia Governor Michele Bullock. These releases precede the headline events of the week: Trump’s formal meeting with Takaichi on Wednesday morning and the Fed’s rate announcement several hours later.
Crédito da imagem: Andrew Harnik | Getty Images News
