Asian Stocks Mixed as Japan Slips on Weak GDP and China–Japan Tensions Rise
Asian markets were mixed on Monday following last week’s sharp global sell-off, with sentiment weighed down by weaker economic data from Japan and escalating geopolitical tensions in the region.
Japan’s Nikkei 225 dipped 0.1% to 50,323.91 after government figures showed the economy contracted at a 1.8% annualised pace in Q3, underscoring the fragility of the country’s post-pandemic recovery.
Chinese markets also moved lower. Hong Kong’s Hang Seng fell 0.7% to 26,384.28, while the Shanghai Composite slid 0.5% to 3,972.03, as strained relations between Beijing and Tokyo further dampened investor sentiment. The downturn followed comments from Prime Minister Sanae Takaichi, who suggested Japan could respond militarily if China were to move against Taiwan — remarks that drew strong objections from Beijing.
China reiterated its claim over Taiwan and warned its citizens against travelling to or studying in Japan, adding to the diplomatic chill.
Elsewhere in the region, South Korea’s Kospi bucked the trend, surging 1.9% to 4,089.25 on strong buying in tech stocks. Chipmakers rallied sharply after announcing plans to collaborate with Nvidia on artificial intelligence development, with SK Hynix jumping 8.2% and Samsung Electronics rising 3.5%.
Australia’s S&P/ASX 200 was little changed at 8,636.40, while Taiwan’s Taiex edged up 0.2% and India’s Sensex gained 0.3%.
