Asian markets open mixed; Nikkei edges up, Indian indices set for fifth loss

Asian markets opened mixed on Thursday, as investors displayed caution ahead of the release of key economic data in many nations.

The morning trading session saw some indices edging higher while others slipped amid concerns over the elevated valuations of key sectors in major Asian economies.

The fresh batch of economic data is expected to drive the next phase of price movements even as the sentiment on trading floors remains subdued, if not negative.

The mood seems to be tentative following a string of losses in major US indices driven by worries over stretched valuations, particularly in the AI tech sector.

Asian markets: Nikkei 225 edges higher, Kospi 100 opens flat

Japan’s Nikkei 225 started the day with a marginal gain of 0.2% as the index edged higher to 45,719.71 levels.

The notes revealed that Japan's central bank is prepared to continue raising interest rates if economic growth and inflation trends align with their forecasts.

Investors appeared cautious, weighing the implications of tighter monetary policy on regional growth prospects and market sentiment.

South Korea's benchmark Kospi 100 index opened flat on Thursday, influenced by broad tech sector weakness and ongoing global concerns regarding the AI industry's cyclicality.

Still, the defence stocks in South Korea continue to display resilience with notable gains in companies like Hanwha Aerospace and Poongsan.

The broader Pacific region displayed an upbeat mood as Australia's S&P/ASX 200 gained 0.25% at open.

Hang Seng, China CSI 300, and Indian market expectations

Hong Kong shares saw mixed movement on Thursday as investors booked profits following a strong tech-driven rally the previous day.

The Hang Seng Index remained largely flat at 26,517.46, while the Hang Seng Tech Index edged up 0.3 per cent.

On the mainland, both the CSI 300 Index and the Shanghai Composite Index dipped slightly, each falling less than 0.1 per cent.

Among individual stocks, Chinese appliance giant Haier Smart Home dropped 3 per cent to HK$25.52. Hang Seng Bank slipped 2 per cent to HK$115.80, and NetEase declined 1.4 per cent to HK$234.

The Indian stock market is set for a fifth consecutive session of losses, with the Sensex and Nifty 50 expected to open lower on Thursday, following weakness in global markets.

Trends in the GIFT Nifty also point to a negative start, with the index trading around 25,071, a discount of nearly 40 points from the previous close of Nifty futures.

On Wednesday, Indian equities extended their losing streak for the fourth day, with the Nifty 50 falling below the 25,100 mark.

The Sensex slipped 386.47 points, or 0.47%, to close at 81,715.63, while the Nifty 50 dropped 112.60 points, or 0.45%, to finish at 25,056.90.