Asian Session Close Indices Retreat Amid Economic Concerns and Market Developments

# Asian Session Close: Indices Retreat Amid Economic Concerns and Market Developments

**Note**: This analysis is generated at the close of the Asian session, focusing on end-of-day performance in Asian markets. Event times are in US Eastern Time.

The Asian session concluded with mixed performances across major indices, reflecting varied market sentiment. Shanghai Composite led gains, while TAIEX lagged, driven by regional economic data and global cues.

## Asian Indices Performance at Close

## Market Commentary at Asian Session Close

**Asian Market Summary – Close of Session**

The Asian markets closed with mixed results amid a backdrop of economic data, geopolitical tensions, and corporate developments.

**China and Hong Kong:**
The Shanghai Composite fell 1.16% to 3,813.56, reflecting ongoing concerns over economic recovery and regulatory pressures. The Shenzhen Component also declined by 0.65%. In Hong Kong, the Hang Seng Index closed down 0.60% at 25,343.43, influenced by the local property market’s struggles, exemplified by “Cassette King” David Chan’s decision to sell luxury property at a discount to manage debt amid a property glut. Additionally, Yunfeng Financial, backed by Jack Ma, announced a significant investment in ether, highlighting a growing interest in digital assets within Hong Kong’s financial landscape.

**Japan:**
The Nikkei 225 decreased by 0.88% to 41,938.89, influenced by profit-taking and external market pressures. The late-session sentiment was dampened by global economic uncertainties and a cautious approach from investors.

**South Korea:**
Contrasting the broader regional trend, the KOSPI rose 0.38% to 3,184.42, buoyed by local corporate earnings and resilience in domestic consumption. However, ongoing labor strikes at Hyundai Motor and GM Korea pose risks to production and exports, raising concerns for the auto sector’s performance.

**Australia:**
The S&P/ASX 200 faced a notable decline of 1.82%, closing at 8,738.80, largely attributed to disappointing economic data and investor caution ahead of upcoming fiscal announcements. The Australian GDP’s growth of 1.8%, exceeding expectations, failed to offset broader market concerns.

**India:**
The NIFTY 50 index closed up 0.57% at 24,719.55, supported by gains in IT and financial sectors, reflecting a positive sentiment despite global headwinds.

**Southeast Asia:**
The Straits Times Index in Singapore fell slightly by 0.21% to 4,289.33. The region is witnessing a surge in fintech innovation, with a new accelerator program launched by Experian and the Singapore Fintech Association aimed at supporting emerging fintech companies.

**Commodities and Currencies:**
In commodities, oil prices remained volatile amid geopolitical tensions, while gold showed resilience as a safe-haven asset. The Australian dollar weakened against the US dollar

## FX, Commodities, and Crypto Performance

At the close of the Asian session, the FX market exhibited mixed sentiment. The USD/JPY rose by 0.13%, while the AUD/USD strengthened by 0.20%. Conversely, USD/SGD and USD/NZD saw slight declines, reflecting a cautious market. In commodities, gold gained 0.36%, indicating a safe-haven demand, while crude oil fell by 1.56%, suggesting bearish sentiment amid supply concerns. In the cryptocurrency space, Bitcoin experienced a minor decline of 0.01%, contrasting with Ethereum’s gain of 0.35%, reflecting a divergent sentiment within the digital asset market. Overall, market participants remain vigilant amid geopolitical and economic uncertainties.

**FX Pairs**

**Commodities**

**Cryptocurrencies**

## Economic Events During Asian Session

The following table lists medium to high-importance economic events from Asian countries that occurred during the Asian session (yesterday 17:00 to today 03:30 ET), impacting market close.

During the Asian session on September 2, 2025, several significant economic indicators were released, impacting market sentiment and currency movements.

At 20:30 ET, Japan’s au Jibun Bank Services PMI for August reported a strong reading of 53.1, surpassing the forecast of 52.7. This positive data suggests a robust expansion in the services sector, bolstering confidence in the Japanese economy. Consequently, the Japanese yen (JPY) experienced a slight appreciation against major currencies as investors reacted favorably to the news.

Shortly after, at 21:45 ET, China’s Caixin Services PMI for August came in at 53.0, exceeding expectations of 52.4. This result indicates continued growth in China’s services sector, contributing to a generally optimistic outlook for the economy. The Chinese yuan (CNY) also strengthened against the US dollar in response to this better-than-expected data.

Overall, both reports contributed to a positive sentiment in the Asian markets, with the JPY and CNY gaining traction as traders responded to the encouraging economic indicators. The session closed with both currencies showing resilience amidst global market fluctuations.

## What to Watch Next

– Follow-through from today’s regional macro data and policy announcements.
– Company earnings or updates impacting large-cap indices.
– Overnight cues from US and European market sessions.
– Early indications from China and Hong Kong markets at tomorrow’s open.
– Currency trends in USD/JPY and USD/CNY influencing equities.
– Geopolitical developments affecting market sentiment.