Asia report: Markets mixed on Japan data, geopolitical concerns
By Josh White
Date: Monday 17 Nov 2025
(Sharecast News) - Asia-Pacific equities traded mixed on Monday as investors weighed intensifying China-Japan tensions alongside fresh regional economic data, while Wall Street's major indexes showed signs of stabilising after last week's tech-led slump.
Sentiment in the region was cautious after Beijing issued a travel and study advisory for Japan, raising concerns for tourism-exposed stocks at the start of the week.
Patrick Munnelly at TickMill noted that "Japanese stocks lagged behind as the nation's economy contracted for the first time in six quarters, with tourism-related sectors under pressure amid growing tensions with China."
In the US on Friday, the Nasdaq Composite edged up 0.13% to 22,900.59, snapping a three-day losing streak after rebounding from an intraday drop of nearly 1.9%.
The S&P 500 finished down 0.05% at 6,734.11, while the Dow Jones Industrial Average fell 0.65% to 47,147.48 after recovering from losses of almost 600 points earlier in the day.
Investors bought into major technology names following the previous session's steep selloff, helping the indices trim heavier declines.
Munnelly said that "US equity futures are on the rise, fuelled by gains in Asian tech stocks, as investors gear up for a crucial week featuring Nvidia's earnings and the long-awaited release of US economic data," adding that risk sentiment had begun to improve after last week's subdued finish.
Tokyo equities fall despite better-than-expected GDP reading
Japan's markets fell as geopolitical concerns overshadowed better-than-expected GDP data.
The Nikkei 225 slipped 0.1% to 50,323.91, with Isetan Mitsukoshi Holdings down 11.31%, CyberAgent dropping 10.35% and Ryohin Keikaku falling 9.39%.
The Topix declined 0.37% to 3,347.53.
Government figures showed the economy contracted 1.8% on an annualised basis in the third quarter, less than the 2.5% drop forecast, while quarter-on-quarter GDP fell 0.4%.
Public demand rose 2.2% annualised and helped soften the downturn, but private demand fell 1.8% amid a more than 32% slide in residential investment.
Exports shrank 4.5% in the quarter as tariffs weighed, though September saw a return to growth following Japan's tariff-cutting trade deal with the US.
The weaker growth outlook was expected to reinforce prime minister Sanae Takaichi's plans for a substantial stimulus package focused on artificial intelligence, semiconductors and shipbuilding, alongside support for energy bills and small businesses.
Munnelly said the Japanese inflation figures "could impact the December BoJ decision" in what is shaping up to be a consequential week for global macro data.
Rest of region mixed after last week's tech consternation
Mainland Chinese markets were softer.
The Shanghai Composite declined 0.46% to 3,972.04, with Zhejiang WHWH down 10.04%, Argus Shanghai Textile Chemicals losing 10.01% and Zhejiang Jianye Chemical falling 10%.
The Shenzhen Component slipped 0.11% to 13,202.00.
In Hong Kong, the Hang Seng Index dropped 0.71% to 26,384.28, weighed by falls in Lenovo Group, down 3.9%, China Hongqiao Group, down 3.64%, and Trip.com Group, down 3.56%.
Munnelly highlighted that "Asia's benchmark index dipped 0.2%," reflecting broader caution across the region as investors awaited a wave of delayed US data releases following the reopening of the federal government.
South Korea outperformed the region as the Kospi rose 1.94% to 4,089.25, supported by strong gains in Isu Chemical, up 23.33%, Korea Circuit, up 20.86%, and Isupetasys, up 18.36%.
Munnelly pointed to optimism around semiconductor demand, noting that "South Korean chipmakers like Samsung Electronics and SK Hynix saw gains after unveiling new investment plans," helping lift futures linked to major US tech benchmarks.
Australia's S&P/ASX 200 was flat, inching up 0.02% to 8,636.40, with DroneShield surging 11.59% and rare-earth producers Iluka Resources and Lynas Rare Earths rising 5.69% and 5.5%, respectively.
New Zealand's S&P/NZX 50 added 0.26% to 13,499.04, lifted by Eroad, Scales Corporation and Summerset Group Holdings, all gaining just over 3%.
Dollar strengthens as oil prices remain stable
In currency markets, the dollar strengthened modestly.
The dollar was last 0.17% stronger on the yen to trade at JPY 154.82, as it gained 0.35% against the Aussie to AUD 1.5349 and ticked up 0.26% on the Kiwi to NZD 1.7645.
Munnelly said the dollar "ticked up 0.1%" as markets awaited clarity from a backlog of US releases, including the September employment report due later this week.
Oil prices were steady, with Brent crude futures unchanged on ICE at $64.39 per barrel, and the NYMEX quote for West Texas Intermediate ahead 0.02% at $60.10.
Reporting by Josh White for Sharecast.com.
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