Year-End Market Caution: Asian Trading Sessions Diverge as Investors Await FOMC Signals

Trading across Asia delivered a fragmented picture as markets navigate year-end positioning uncertainties. The primary focus remains tethered to the upcoming FOMC minutes release scheduled for Tuesday, while geopolitical tensions spanning China, the Middle East, and the Russia-Ukraine conflict continue to weigh on investor sentiment.

Mixed Regional Performance Shapes the Outlook

Mainland China’s Shanghai Composite Index concluded the session flat at 3,965.12, ending a nine-day rally. Trading fluctuated between 3,947.42 and 3,979.99 throughout the day. Meanwhile, the Shenzhen Component Index demonstrated modest strength, advancing 0.50 percent to 13,604.07 from its prior 13,537.10 close.

Japan’s benchmark Nikkei 225 retreated 183 points, or 0.36 percent, settling at 50,343.50. The index traded within a 341-point range during the session. Positive momentum came from Fujitsu and Nidec Corp, each rallying beyond 2.2 percent, while Dainippon Screen Manufacturing, Murata Manufacturing, and Nitori Holdings each surged over 1 percent. Sumitomo Metal Mining spearheaded the losses with a 4.8 percent decline, followed by Rakuten, Japan Steel Works, Mitsubishi Materials, and TOTO, all dropping more than 2 percent.

South Korea’s Kospi Index slipped 6 points to 4,214.17, representing a 0.15 percent decrease from 4,220.56. Daily trading ranged between 4,186.95 and 4,226.36.

Hong Kong Gains Ground

Hong Kong’s equities market outperformed regional peers, with the Hang Seng Index jumping 219 points or 0.86 percent to 25,854.60. The index traded between 25,611.23 and 25,930.22 during the session.

Australia and New Zealand Show Divergent Trends

Australia’s S&P/ASX200 edged lower, declining 9 points or 0.10 percent to 8,717.10. Netwealth Group rebounded 2.1 percent, while Temple & Webster Group, Mirvac Group, Santos, and Centuria Capital Group all advanced more than 1.5 percent. However, Silex Systems and Liontown both plummeted over 4.7 percent, with mining-related losses prevalent—Newmont Corporation fell 4.1 percent, and both Catalyst Metals and Evolution Mining surrendered more than 3 percent.

The NZX 50 demonstrated resilience, gaining 22 points or 0.16 percent to close at 13,548.13. Synlait Milk led gains with a 3.2 percent surge, while Pacific Edge, NZX, Scales, and Sanford all rallied over 2 percent. Conversely, KMD Brands, Summerset Group, Serko, and Genesis Energy declined more than 1 percent each.

Wall Street’s Negative Close Signals Risk Reassessment

The preceding session on Wall Street ended in the red as investors reassessed valuations within the artificial intelligence sector. The Dow Jones Industrial Average surrendered 0.51 percent, finishing at 48,746.93, while the technology-focused Nasdaq Composite dropped 0.50 percent to 23,474.35, reflecting cautious sentiment ahead of policy-sensitive developments.

Disclaimer: The views and opinions expressed are those of the author and do not necessarily represent those of Nasdaq, Inc.