On November 05, 2025, Asian markets experienced a tumultuous session influenced by a variety of macroeconomic factors and corporate developments. Key drivers included geopolitical tensions, particularly regarding technology and trade, as well as varying economic outlooks across the region.

The Nikkei index faced significant pressure, ending down over 2%, primarily due to a sharp decline in technology stocks that had recently reached new highs. This downturn reflects broader concerns regarding valuation in the tech sector, exacerbated by SoftBank’s 10% plunge, which resulted in a staggering $23 billion loss in market capitalization amid valuation jitters surrounding AI stocks. In contrast, Toyota’s decision to lift its fiscal year 2025 net profit outlook, despite the looming impact of US tariffs, provided some positive sentiment, highlighting resilience in the automotive sector.

In China, the government set a GDP benchmark target of 4.17% annual growth through 2035, signaling a long-term commitment to economic stability that has attracted renewed interest from private equity funds bullish on China’s tech-focused economic plan. However, tensions surrounding foreign investment, particularly in the semiconductor sector, were reignited by the Nexperia fallout, which has prompted renewed debates within the EU regarding Chinese investments.

Hong Kong’s financial landscape was affected by legal troubles in the cryptocurrency space, as police charged individuals involved in a significant fraud case. Meanwhile, Franklin Templeton’s introduction of a tokenized money market fund in Hong Kong represents a notable trend towards digital finance in the region.

Overall, Asian markets are navigating a complex landscape characterized by corporate earnings, regulatory challenges, and strategic investments, reflecting a mix of optimism and caution among investors.