Retail traders turn defensive and unwind long positions in major Asian indices

The latest weekly client sentiment data from Capital.com reveals shifting retail positioning across global markets as traders take profits in major Asian indices and re-enter precious metals as they seek defensive exposure.

Indices

Following recent price gains, retail traders on Capital.com have unwound long positions in the Nikkei as it makes a record high and entices longs into closing out, moving sentiment back toward neutral from a heavy 65% buy position last Monday. The Hang Seng also eased from extreme bullishness, dropping to 76% buy from 81% a week ago, while traders continued to reduce their long exposure in the ASX, falling to 80% from 86%.

Commodities

In contrast, traders are returning to precious metals. Gold remains in heavy buy territory at 68% and up from 67% the previous week, as longs continue to seek re-entry into the uptrend. Silver saw a more notable uptick, rising to 75% buy from 69%, while WTI crude stayed at an extreme buy level of 91%, underscoring persistent bullish sentiment in energy markets as longs look for a way out in need of a larger increase in price.

FX

In FX markets, traders appear more cautious and range-bound, waiting for clearer macro or policy signals to define direction. Currency sentiment showed mixed shifts. EUR/USD moved back to neutral from a majority buy (57%), while GBP/USD traders unwound longs to 57% from 64% as subdued price action encouraged range trading. Meanwhile, USD/JPY sentiment was bullish sitting at 73% long before the 2% gap higher at the start of this week following the LDP’s pro-stimulus Takaichi selection shifted the bias to a slight sell 53%.

“We’re seeing traders taking some profits after strong rallies in major equity indices like the Nikkei and Hang Seng, while interest is building again in precious metals,” said Monte Safieddine, Head of Market Research, MENA at Capital.com.

“This rotation into gold and silver highlights a typical defensive move by retail traders who are balancing risk after sharp equity gains. The data also reflects how dynamic retail sentiment can be, shifting quickly across asset classes as traders respond to macro cues and price action.”

To access Capital.com’s  full Weekly Sentiment Report (updated Mondays), go to: https://capital.com/weekly-sentiment-report-mena