# Asian Session Close: Indices Mixed as BOJ Signals Rate Hikes Amid Market Optimism
**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 FTSE Bursa Malaysia KLCI lagged, driven by regional economic data and global cues.
## Asian Indices Performance at Close
| Index | Price | Daily Change (%) |
|---|---|---|
| Shanghai Composite | 3882.78 | 0.52 |
| Nikkei 225 | 44932.63 | -0.25 |
| Hang Seng Index | 26855.56 | 0.87 |
| Shenzhen Component | 13526.51 | 0.35 |
| KOSPI | 3424.60 | -0.19 |
| S&P/ASX 200 | 8848.80 | -0.16 |
| NIFTY 50 | 24611.10 | -0.10 |
| Straits Times Index | 4300.16 | 0.71 |
| S&P/NZX 50 | 13292.36 | 1.22 |
| Thailand SET Index | 1274.17 | -1.08 |
| FTSE Bursa Malaysia KLCI | 1611.88 | 0.06 |
## Market Commentary at Asian Session Close
At the close of the Asian session, market sentiment was mixed across major indices, reflecting a range of economic signals and geopolitical developments.
**Japan**
The Nikkei 225 ended down by 0.25% at 44,932.63, amid speculation that the Bank of Japan (BOJ) might consider raising interest rates again, as indicated by a board member during a recent policy meeting. This potential shift in monetary policy comes as the market digests easing concerns over U.S. tariffs, which had previously pressured Japanese exports.
**China and Hong Kong**
In contrast, the Hang Seng Index rose by 0.87% to close at 26,855.56, continuing its strong rebound with a 30% increase year-to-date. This recovery is attributed to improved investor sentiment and a surge in initial public offerings (IPOs), with funds raised from new share sales skyrocketing by 220% in 2025. The Shanghai Composite also saw a modest gain of 0.52%, closing at 3,882.78. However, the backdrop of ongoing contraction in manufacturing activity, with the PMI at 49.8, raises concerns about domestic demand and the need for further government support.
**South Korea**
The KOSPI fell by 0.19% to finish at 3,424.60, influenced by rising inflation concerns and the economic implications of increased wedding costs in the capital region. The South Korean government is also addressing challenges in the petrochemical sector, launching a restructuring drive amid oversupply issues.
**Australia**
The S&P/ASX 200 decreased by 0.16% to close at 8,848.80, as the Reserve Bank of Australia opted to maintain its policy rate at 3.6% amid persistent inflation concerns. This decision reflects a cautious approach in the face of global economic uncertainties.
**India**
The Nifty 50 experienced a slight decline of 0.10%, closing at 24,611.10, as foreign investors continued to exit Indian stocks, potentially leading to record outflows this year. This trend raises concerns about the stability of Indian equities in the current market climate.
**Currencies and Commodities**
The Japanese yen traded slightly weaker against the dollar, reflecting the BOJ’s dovish stance. In commodities, oil prices remained stable, but ongoing inflationary pressures are likely to keep market participants cautious.
**Cryptocurrency**
In the crypto space, regulatory discussions intensified, particularly in South Korea,
## FX, Commodities, and Crypto Performance
At the close of the Asian session, commodities exhibited mixed performance, with gold declining 0.38% to $3,841.50 and crude oil falling 0.77% to $62.93, reflecting cautious market sentiment amid ongoing economic uncertainties. In the cryptocurrency market, Bitcoin decreased by 1.22%, trading at $112,990.33, while Ethereum experienced a slightly sharper decline of 1.31%, settling at $4,162.52. Overall, the downward price movements across both commodities and cryptocurrencies suggest a prevailing risk-off sentiment among investors, likely influenced by macroeconomic factors and market volatility.
**Commodities**
| Commodity | Price | Daily Change (%) |
|---|---|---|
| Gold December | 3841.50 | -0.38 |
| Crude Oil December | 62.93 | -0.77 |
**Cryptocurrencies**
| Crypto | Price | Daily Change (%) |
|---|---|---|
| Bitcoin | 112990.33 | -1.22 |
| Ethereum | 4162.52 | -1.31 |
## 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.
| Date | Time | Cur | Imp | Event | Actual | Forecast |
|---|---|---|---|---|---|---|
| 2025-09-29 | 19:50 | 🇯🇵 | Medium | Industrial Production (MoM) (Aug) | -1.2% | -0.7% |
| 2025-09-29 | 19:50 | 🇯🇵 | Medium | Tankan All Big Industry CAPEX (Q3) | ||
| 2025-09-29 | 19:50 | 🇯🇵 | Medium | Tankan Big Manufacturing Outlook Index (Q3) | 13 | |
| 2025-09-29 | 19:50 | 🇯🇵 | Medium | Tankan Large Manufacturers Index (Q3) | 14 | |
| 2025-09-29 | 19:50 | 🇯🇵 | Medium | Tankan Large Non-Manufacturers Index (Q3) | 33 | |
| 2025-09-29 | 21:30 | 🇨🇳 | Medium | Chinese Composite PMI (Sep) | 50.6 | |
| 2025-09-29 | 21:30 | 🇨🇳 | High | Manufacturing PMI (Sep) | 49.8 | 49.6 |
| 2025-09-29 | 21:30 | 🇨🇳 | Medium | Non-Manufacturing PMI (Sep) | 50.0 | 50.3 |
| 2025-09-29 | 21:45 | 🇨🇳 | Medium | Caixin Manufacturing PMI (MoM) (Sep) | 51.2 | 50.3 |
| 2025-09-29 | 21:45 | 🇨🇳 | Medium | Caixin Services PMI (Sep) | 52.9 | 52.4 |
During the Asian session from September 29, 2025, significant economic events influenced market sentiment and currency movements.
Japan’s industrial production for August reported a sharper-than-expected decline of -1.2%, compared to a forecast of -0.7%, which raised concerns about the economic recovery and led to a weakening of the JPY. Additionally, the Tankan survey results for Q3, including the Large Manufacturers Index and Non-Manufacturers Index, were anticipated but not released, leaving investors cautious about future corporate investment trends.
In China, the Composite PMI for September came in at 50.6, indicating stable economic conditions, while the Manufacturing PMI slightly exceeded expectations at 49.8, suggesting marginal contraction. However, the Non-Manufacturing PMI fell short of forecasts at 50.0. The Caixin Manufacturing PMI and Services PMI both showed stronger-than-expected performance, at 51.2 and 52.9 respectively, which helped bolster the CNY against the JPY and other currencies.
Overall, the JPY depreciated due to disappointing industrial production data, while the CNY showed resilience, reflecting mixed economic signals but positive sentiment in service sectors.
