Asian Stocks Mixed as Yen Surges and Markets Await Fed, Tech Earnings

Asian stock markets traded mixed on Monday as investors stayed cautious ahead of a highly anticipated Federal Reserve policy meeting later this week and a heavy global technology earnings calendar. Market sentiment across the region was further pressured by weakness in U.S. equities and a sharp rise in the Japanese yen, which weighed heavily on exporter-driven indexes.

U.S. stock indexes ended last week on a softer note, reflecting investor uncertainty around interest rate policy and corporate earnings. This cautious tone carried into Asian trading hours, with U.S. stock futures also pointing lower, signaling subdued risk appetite across global markets.

Japanese equities underperformed, with the Nikkei 225 index falling nearly 2%. The decline was largely driven by a sudden strengthening of the yen against the U.S. dollar, which sparked renewed concerns over potential currency market intervention by Japanese and U.S. authorities. A stronger yen typically erodes overseas earnings for Japanese exporters, prompting broad-based selling in Tokyo. The move into safe assets was evident as gold prices surged to record highs, underlining growing investor anxiety ahead of key policy events.

Elsewhere in Asia, South Korea’s KOSPI slipped nearly 1% after touching fresh record highs earlier in the session, as profit-taking emerged in heavyweight stocks. China’s Shanghai Composite remained largely flat, reflecting ongoing caution amid uneven economic signals. Australia’s S&P/ASX 200 edged slightly higher, while Singapore’s Straits Times Index declined modestly. Indian stock markets were closed due to a public holiday.

Attention now turns squarely to the Federal Reserve’s upcoming meeting, where interest rates are widely expected to remain unchanged. However, investors will closely analyze any changes in forward guidance, particularly as inflation pressures persist. Comments from Fed Chair Jerome Powell are likely to influence global market direction in the near term.

Adding to volatility is a packed earnings schedule, featuring results from major technology companies such as Microsoft, Meta, Tesla, and Apple. In Asia, investors are also watching earnings from Samsung Electronics and SK Hynix. While optimism around artificial intelligence-driven growth remains, concerns about high valuations, rising costs, and currency risks continue to temper enthusiasm, keeping markets on edge.