Asian trading session
Family VII · Market & styles
Not to be confused with london trading session, new york trading session, trading session.
Asian trading session is the part of the 24-hour trading day when the major exchanges and over-the-counter markets of the Asia-Pacific region are active. It usually begins with the opening of the Sydney and Tokyo markets and ends as the London session gets under way. Because it overlaps with the close of the New York session, liquidity can be thin at the start and end, with the deepest activity during the middle hours.[1]
What happens during the Asian session
Activity is concentrated in currencies such as the Japanese yen, Australian dollar, New Zealand dollar and Chinese yuan, along with regional equity index futures and commodities like iron ore and gold. Economic data from Japan, China, Australia and South Korea are often released during these hours, and central bank decisions from the Reserve Bank of Australia or Bank of Japan can cause sharp moves.
Liquidity is generally lower than in the London or New York sessions, which can lead to wider spreads and occasional price gaps. Traders who focus on this session often watch the Nikkei 225, Hang Seng and ASX 200 indices, as well as the AUD/JPY and NZD/JPY currency pairs.
Session times and overlap
The exact start and end times depend on daylight saving changes in each country. A common approximation is 23:00 to 08:00 UTC, but the session can shift by an hour or more. The overlap with the New York session (roughly 23:00 to 01:00 UTC) and the London session (roughly 07:00 to 08:00 UTC) can bring brief spikes in volume.
Holidays in Japan, China, Australia and other regional markets can reduce activity or close parts of the session entirely. For example, Golden Week in Japan or Chinese New Year can lead to very thin conditions.
Worked example: session range and pip movement
Suppose a trader monitors AUD/JPY during the Asian session. The session opens at 23:00 UTC with a price of 85.00. By the time the session ends at 08:00 UTC, the price has moved to 85.50.
The range of 70 pips is the difference between the high and low. This figure helps traders assess volatility and set stop-loss levels relative to typical session movement.
Often confused with
- london trading session
- The London trading session covers the hours when European markets are open, typically from 08:00 to 17:00 UTC, and is known for the highest liquidity in currency pairs involving the euro and British pound; the visible sign is the time of day, as London overlaps with the second half of the Asian session and the first half of the New York session.
- new york trading session
- The New York trading session runs when North American markets are open, roughly from 13:00 to 22:00 UTC, and is dominated by the US dollar and equity index futures; the visible sign is that it begins as the London session is ending and does not overlap with the Asian session except for a brief period near its close.
- trading session
- A trading session is any defined period during which a market or exchange is open for business, which can be a full 24-hour cycle or a specific window such as the Asian, London or New York session; the visible sign is that the term is generic and does not refer to a particular geographic region.
See also
References
- ↑ Trading hours published by the exchanges and venues concerned. Session boundaries shift with daylight saving in each region and are not the same all year.