Bank of Japan Outlook, Beijing Economic Report Roil Asian Stock Markets

05:49 AM EST, 12/29/2025 (MT Newswires) -- Asian stock markets were mixed on the downside Monday, as traders weighed possible tightening by the Bank of Japan and as soft industrial profits report from Beijing.

Hong Kong, Shanghai and Tokyo finished in the red, while other regional exchanges were mixed but with gains in Seoul and Taiwan.

In Japan, the Nikkei 225 opened lower on Wall Street cues and could not recover, finishing off 0.4% as a stronger yen pressured export issues, especially in the tech sector.

The benchmark Nikkei 225 fell 223.47 to 50,526.92, although gaining issues outnumbered losers 140 to 84.

Leading the upside was conglomerate Itochu, up 5.3%, while Sumitomo Pharma declined 3.7%.

In economic news, minutes from the Bank of Japan policy session of Dec. 18 to 19 indicate central bankers anticipate additional rate hikes in 2026.

In Hong Kong, the Hang Seng Index opened higher but sank in trading, closing down 0.7% after report from Beijing pointed to fresh slippage in industrial black ink.

The broad gauge Hang Seng fell 183.70 to 25,635.23, as losing issues outnumbered gainers 67 to 22. The Hang Seng TECH Index lost 0.3% on the day, while the Mainland Properties Index fell 0.7%.

Leading the upside was EV maker BYD, gaining 3.7%, while Macau gaming house Sands China declined 4.5%.

On the mainland, the Shanghai Composite closed evenly at 3,965.28.

In economic news, China's reported industrial profits in November declined 13.1% from a year earlier, aggravating concerns that the nation's huge economy has not yet recovered from property-sector and consumer weakness in the post-pandemic era.

The November industrial-profit slip followed a 5.5% on-year decrease logged in October, reported the NBS.

On the other regional exchanges, the S. Korean KOSPI rose 2.2% on gains in chipmaker issues; the Taiwan TWSE added 0.9%; the Australian ASX 200 lost 0.4%; the Singapore Straits Times Index was steady, and the Thai Set declined 0.4%. In late trading in Mumbai, the Sensex was down 0.4%.

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