Asian Session
The Asian trading session is the first major "block" of the global trading day. It's driven primarily by activity in the Asia-Pacific region, including Sydney and Tokyo.
In plain English: "Asia is where the trading day starts, often with calmer price action than London or New York."
What Is the Asian Trading Session?
Financial markets run almost continuously from Monday to Friday. Traders often break this into "sessions" based on when major financial centres are most active. The Asian session typically covers:
- Sydney open (often the true start of the FX day)
- Tokyo hours (a key liquidity hub, especially for JPY)
- Broader Asia-Pacific activity (Singapore, Hong Kong, etc.)
Why sessions matter
Sessions influence liquidity, spreads, volatility, and the likelihood of trends vs ranges. That impacts execution quality and strategy choice.
Typical Asian Session Times (UK Time)
Session times shift with daylight saving changes, but traders often think in rough blocks. As a practical guide:
| Centre | Typical local focus | Practical UK-time window |
|---|---|---|
| Sydney | Early liquidity / "day open" | Late evening → early morning (UK) |
| Tokyo | JPY-driven flows, Asia risk tone | Overnight → morning (UK) |
⚠️ Important
"Session" timing depends on the instrument and venue. For example, equity index futures have their own microstructure and liquidity waves. Use your platform's volume/volatility tools as the operational reality.
Liquidity and Volatility in the Asian Session
The Asian session often has lower liquidity than London or New York, which can mean:
- More range-bound trading in some instruments
- Potentially wider spreads (especially on minor/exotic pairs)
- Cleaner moves in Asia-focused pairs when sentiment is clear
What "lower liquidity" can look like
Price may drift or range in a narrow band, then break out later when London opens and volume increases.
⚠️ When volatility spikes in Asia
Volatility can increase sharply around key releases (inflation, jobs, central bank decisions) or geopolitical/risk headlines. Asia can set the tone for the whole day when risk sentiment flips.
What Tends to Move During the Asian Session?
Instruments most associated with Asia-Pacific flows often show better activity:
- JPY pairs: USD/JPY, EUR/JPY, GBP/JPY
- AUD and NZD pairs: AUD/USD, NZD/USD, AUD/JPY
- Gold and risk sentiment proxies (varies by day and macro narrative)
⚠️ Spread awareness
Liquidity can be thinner in Asia for some pairs, increasing costs. Always check the spread and typical slippage on your broker during your trading hours.
How to Trade the Asian Session
There is no "best" session. There is only what fits your strategy and schedule. Common approaches in the Asian session include:
- Range strategies: if price is contained and volatility is low
- Breakout prep: identify Asia range highs/lows to watch into London open
- Asia-focused pairs: trade JPY/AUD/NZD pairs when catalysts are Asia-based
✅ Beginner-friendly rules
- Trade smaller if spreads are wider
- Avoid overtrading in choppy ranges
- Know the calendar for Japan/Australia/New Zealand releases
- Plan for London: many moves expand once Europe comes online
⚠️ Execution note
In thinner liquidity, stop orders can slip more. If your strategy is sensitive to execution quality, reduce size or choose instruments with tighter spreads during Asia.
Common Misconceptions
- "Asia is always quiet."
Often, but not always. Risk events can produce strong trends. - "Sessions are fixed by the clock."
Liquidity waves are real, but instrument-specific behaviour matters more than labels. - "Tighter spreads mean a better trade."
Cost matters, but strategy fit and risk control matter more.
✅ Quick Checkpoint
Try answering before expanding the model answers.
1) What is the Asian trading session?
The early part of the global trading day driven by Asia-Pacific centres such as Sydney and Tokyo.
2) Why can spreads be wider in Asia?
Liquidity is often lower than London/New York, so quoting can be less competitive, especially on minor/exotic pairs.
3) Name two pairs often watched in Asia.
Examples: USD/JPY, AUD/USD, NZD/USD, AUD/JPY, EUR/JPY.
Frequently Asked Questions
Is the Asian session good for beginners?
It can be, especially if you prefer slower price action and range behaviour. But beginners should be careful with spreads and avoid forcing trades in low volatility.
Why do traders talk about the "Asia range"?
Many traders mark the high/low formed during Asia and watch how price behaves when London opens. Breakouts or reversals around those levels can offer structure for a plan.
Do stocks trade in the Asian session?
Asian stock exchanges trade in their local hours (Japan, Australia, Hong Kong, etc.). If you trade indices via CFDs or futures, liquidity and volatility will depend on the specific contract and exchange hours.
Can news in Asia move markets globally?
Yes. Significant economic releases, central bank decisions, or geopolitical headlines can shift global risk sentiment and set the direction for the day.
Summary
The Asian session starts the global trading day and is driven by Asia-Pacific activity (notably Sydney and Tokyo). It is often lower liquidity than London/New York, which can mean more ranges and wider spreads on some instruments—while JPY/AUD/NZD pairs can still move meaningfully, especially around catalysts.