Asia markets slip while Kospi bucks downturn

October 17, 2025 (MLN): Asia markets traded mostly lower on Friday, tracking overnight declines on Wall Street as concerns over U.S. regional banks and trade tensions weighed on sentiment.

However, South Korea’s Kospi stood out, rising for the third consecutive session to a fresh record high, bucking the regional downtrend.

The Kospi index gained early momentum, hitting an intraday peak of 3,794.87, making it the only major Asian market in positive territory. In contrast, the Kosdaq erased earlier gains to hover near the flatline.

Investor focus remained on ongoing trade negotiations between South Korea and the United States, which helped sustain optimism in Seoul’s market despite the broader weakness across the region.

Elsewhere in Asia, Hong Kong’s Hang Seng Index tumbled 1.6%, leading regional losses as technology and education stocks weighed heavily.

Shares of Chinese automaker BYD dropped about 2.5% after reports that the company will recall 115,000 vehicles its largest-ever recall due to design flaws and battery related issues, according to Reuters.

Mainland Chinese stocks also retreated, with the CSI 300 index slipping 1.27%, while Japan’s Nikkei 225 fell 1.32% and the broader Topix lost 0.94%.

In Australia, the S&P/ASX 200 declined 0.78%, and Singapore’s Straits Times Index saw muted movement despite a surprise upside in the country’s non-oil domestic exports, which surged 6.9% year-on-year in September, defying forecasts of a 2.1% contraction and rebounding from an 11.3% slump in August.

Across the Pacific, U.S. stock futures edged lower Thursday night following a sharp sell-off on Wall Street.

The Dow Jones Industrial Average shed 301 points (0.7%) to close at 45,952.24, after briefly gaining earlier in the session.

The S&P 500 slipped 0.6% to 6,629.07, while the Nasdaq Composite declined 0.5% to 22,562.54.

Market analysts said sentiment remains fragile amid renewed worries about loan exposures in U.S. regional banks and intensifying trade uncertainty, keeping investors cautious heading into the weekend.

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