Asia-Pacific markets opened on a cautious note as investors awaited key US meetings this week, including the Trump-Xi summit. South Korea's KOSPI led regional gains at +0.96%, while Australia's ASX 200 fell -0.22%.

Regional market performance

The broader Asia-Pacific region saw mixed momentum across major indices. Trading conditions remained thinner due to Japanese market closures through Wednesday.

The table below summarises the opening performance across the key Asia-Pacific indices:

The session's cautious tone was driven by anticipation of geopolitical developments and reduced liquidity from Japanese market holidays.

Asia-Pacific markets opened mixed to lower, with US sanctions on Iran and escalating US-Canada trade tensions weighing on regional sentiment. The KOSPI led losses with a decline of 4.30%, while Australia's ASX 200 bucked the trend.

Market performance across the region

The divergence across Asia-Pacific indices reflected uneven investor response to the dual headwinds. South Korea's KOSPI bore the sharpest impact, while Japan's Nikkei 225 also traded in negative territory. Australia's benchmark index managed a modest gain.

The table below summarises opening moves across key Asia-Pacific indices:

Factors weighing on sentiment

Two developments shaped the cautious mood across markets. US sanctions on Iran introduced fresh uncertainty in energy and geopolitical risk calculations, while escalating trade tensions between the US and Canada added to concerns over North American trade flows and their broader economic implications for export-oriented Asian economies.

South Korea, with its heavy reliance on exports and global trade linkages, registered the steepest decline among the three indices. Japan's Nikkei 225 also retreated, reflecting sensitivity to global trade disruptions. Australia's ASX 200 managed to hold in positive territory, posting a gain of 0.33%, diverging from the broader regional trend.