CHENNAI: Asian markets traded mixed on Monday (September 22), with investors tracking Wall Street’s recent gains and assessing the outlook for further US interest rate cuts.
Japan’s Nikkei rose sharply, up around 1.3 percent to 1.5 percent, after the Bank of Japan eased worries about its massive ETF holdings, assuring investors that any sales would be carried out gradually. South Korea’s Kospi also advanced, while Australian shares posted modest gains. In contrast, Hong Kong’s Hang Seng slipped and China’s Shanghai Composite was little changed.
In commodities, oil prices edged higher amid geopolitical tensions and supply concerns, while gold strengthened on safe-haven demand. The U.S. dollar remained steady, and the yen weakened after the BOJ’s comments.
Indian markets opened weaker, with the Sensex down about 117 points at 82,509 and the Nifty 50 lower by 16 points at 25,311 as of 11 AM IST. The selling was led by technology stocks, which came under heavy pressure after the US announced a sharp hike in the one-time fee for new H-1B visas to $100,000. Shares of Infosys, TCS, HCL Tech, and Tech Mahindra dropped 3 percent to 6 percent, dragging the Nifty IT index down sharply.
Other sectors, including autos, metals, and media, showed resilience, while consumer-linked sectors gained support from the GST rate cuts that came into effect from today. Analysts expect these changes to boost festival season demand.
Market participants remain cautious, balancing positive signals such as GST reforms and robust domestic consumption against external headwinds like US visa policy changes and high market valuations. Foreign investor flows and upcoming US economic data, including inflation numbers and Fed speeches, will be closely watched for direction.