Asia report: Markets mixed ahead of RBA, Fed decisions
By Josh White
Date: Monday 08 Dec 2025
(Sharecast News) - Asia-Pacific equities traded mixed on Monday as investors assessed China's latest trade figures while anticipating the Reserve Bank of Australia's two-day policy meeting, which begins this week.
The uneven regional performance reflected economic signals, with Chinese export strength contrasting with weaker growth indicators in Japan.
Patrick Munnelly at TickMill said investors were positioning cautiously ahead of a heavy slate of monetary announcements, noting that "global markets climbed on Monday as investors geared up for a busy week of central bank meetings, with the Federal Reserve widely anticipated to cut interest rates."
Tokyo shares manage gains despite GDP revision
Japan's Nikkei 225 edged up 0.18% to 50,581.94, supported by gains in Fujikura, Mitsubishi Estate and Japan Steel Works, which rose 6.99%, 5.47% and 4.68%, respectively.
The broader Topix gained 0.65% to 3,384.31.
However, sentiment was tempered by revised GDP data showing Japan's economy shrank more sharply than initially reported in the third quarter.
Official figures revealed a 2.3% annualised contraction between July and September, worse than both economists' median forecast for a 2.0% drop and the preliminary estimate of a 1.8% decline.
Munnelly observed that "the government revealed on Monday that the economy shrank during the third quarter, based on revised data," adding that the downturn "adds complexity to the Bank of Japan's policy meeting set for next week, [but] it's unlikely to derail its steady path of rate hikes."
Mainland markets advance
Chinese markets advanced after trade data signalled renewed export momentum.
The Shanghai Composite climbed 0.54% to 3,924.08, with Fujian Fynex Textile Science & Technology, Guangdong Champion Asia Electronics and Nanjing Huamai Technology each gaining around 10%.
The Shenzhen Component rose 1.39% to 13,329.99.
Outbound shipments surged 5.9% year on year in November, beating expectations for 3.8% growth and rebounding from an unexpected 1.1% contraction in October, the first decline since March 2024.
Munnelly noted that "in mainland China, equities outperformed, buoyed by government initiatives to attract investment into the stock market and stronger-than-expected export data."
Hong Kong lagged the region, with the Hang Seng Index falling 1.23% to 25,765.36.
Pop Mart International Group plunged 8.49% amid concern that its US sales growth may be slowing, while China Construction Bank and China Merchants Bank dropped 4.01% and 3.54%, respectively.
Munnelly pointed to mounting geopolitical friction as another drag on sentiment, saying that "defense stocks in both Japan and China saw gains on Monday as diplomatic tensions between the two nations intensified" after reports that "Chinese fighter jets had locked radar systems on Japanese military aircraft for the first time."
South Korea's Kospi outperformed, advancing 1.34% to 4,154.85.
Samsung Pharmaceutical surged 29.99% after securing rights to market a treatment for progressive supranuclear palsy, while Dongyang Express and Hyundai Pharmaceutical jumped 29.98% and 29.84%.
Aussie, Kiwi bourses mixed but little changed
Australia's S&P/ASX 200 slipped 0.12% to 8,624.40, weighed down by declines in Capricorn Metals, Life360 and Lynas Rare Earths, which fell 4.39%, 3.84% and 3.75%.
Analysts flagged Lynas as overvalued despite robust sector prospects, with shares touching their lowest level since early November.
Markets were cautious ahead of Tuesday's policy decision, with Munnelly highlighting that "rate decisions are due from the Reserve Bank of Australia (RBA) on Tuesday," forming part of a week in which multiple central banks are set to hold or adjust rates.
In New Zealand, the S&P/NZX 50 was broadly flat, rising 0.02% to 13,486.32.
Vital Healthcare Property Trust and Stride Property led gains, while Fletcher Building rose 2.2% after restructuring its debt profile and extending maturities to 2028.
Dollar mixed as oil prices ease
In currency markets, the dollar traded marginally higher against the yen at JPY 155.45 and the Aussie at AUD 1.5063, while easing 0.2% on the Kiwi to NZD 1.7280.
Munnelly commented that "the US dollar index slipped slightly on Monday, while Treasury yields held steady," reflecting a broader repricing of risk ahead of the Federal Reserve's meeting.
Oil prices declined, with Brent crude futures last down 0.67% on ICE at $63.32 per barrel, and the NYMEX quote for West Texas Intermediate off 0.73% at $59.64.
Reporting by Josh White for Sharecast.com.
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