Asia Splits as RBA Decision Looms; Korea Advances, China Retreats

Asian equity markets traded mixed as investors positioned ahead of the Reserve Bank of Australia's rate decision. Korean benchmarks advanced, extending the semiconductor-led leadership that has characterised the region's strongest performers, while mainland Chinese indices retreated on continued soft domestic demand signals. Alibaba was a notable exception, drawing buying interest on stock-specific catalysts that separated it from the broader Chinese tape — a reminder that idiosyncratic drivers can override index-level weakness in a market where policy support and consumer recovery remain uneven. The RBA verdict carries outsized weight for Antipodean rate expectations and, by extension, for the AUD carry complex that transmits into regional risk appetite. Separately, Hong Kong is preparing to fold proprietary trading firms into its 'big bang' tax reform package, a change that may exempt performance-related pay for staff at firms including Jane Street and Citadel Securities. If enacted, the measure would materially sharpen Hong Kong's competitiveness against Singapore in the contest for global market-making talent and reinforce the territory's push to reclaim its status as Asia's dominant financial hub.