Asian markets closed broadly higher on May 29, 2026, as investors returned to equities following the previous session’s weakness. Strong gains in South Korea, Japan, and Australia helped drive a regional rebound, while Hong Kong also advanced.

The session reflected improving sentiment across Asia, with technology and growth-oriented markets once again leading performance.

South Korea and Japan Drive Regional Momentum

South Korea’s KOSPI Composite Index surged 3.55% to 8,476.15, delivering the strongest performance among major Asian benchmarks. The rally pushed the index to fresh highs and reinforced investor enthusiasm for semiconductor, artificial intelligence, and technology-related sectors.

Japan’s Nikkei 225 jumped 2.53% to 66,329.50, extending its impressive advance and establishing a new high above the 66,000 level. The continued strength highlights sustained investor confidence in Japan’s export-driven economy and corporate earnings outlook.

Together, South Korea and Japan provided the primary momentum behind Asia’s strong finish.

Australia and Hong Kong Join the Rally

Australia’s S&P/ASX 200 rose 1.62% to 8,731.70, rebounding sharply from the previous session’s losses. The gain suggests renewed buying interest in financial and commodity-linked sectors.

Hong Kong’s Hang Seng Index advanced 0.70% to 25,182.39, recovering part of its recent decline and helping improve sentiment across Greater China markets.

The broad participation in the rally indicates investors were willing to re-enter risk assets despite lingering concerns in some regional economies.

China and India Lag the Region

Not all markets participated in the rebound.

China’s SSE Composite Index fell 0.73% to 4,068.57, extending recent weakness and remaining one of the few major benchmarks in negative territory. The decline reflects continued caution toward mainland Chinese equities.

India’s S&P BSE Sensex dropped 1.23% to 74,932.22, making it the weakest-performing major market in Asia during the session. The loss suggests ongoing consolidation and softer investor sentiment following recent volatility.

Currency Markets Support Risk-On Environment

Currency markets showed moderate strength alongside equities.

The Australian Dollar Index gained 0.31% to 71.62, reflecting improving confidence in risk-sensitive assets. Meanwhile, the Japanese Yen Index rose 0.17% to 62.81, indicating balanced capital flows despite the strong equity rally.

The stability in currencies supports the view that investors are selectively increasing exposure to regional markets rather than aggressively seeking defensive assets.

Middle Eastern Exchanges Remain Closed

Several regional exchanges remained closed, reducing overall participation and cross-border trading activity.

Closed markets included Bahrain Stock Exchange, Jordan’s Amman Stock Exchange, Kuwait City Stock Exchange, Qatar’s Doha Stock Exchange, Saudi Arabia’s Stock Exchange, Türkiye’s Istanbul Stock Exchange, the Dubai Stock Exchange, and the Abu Dhabi Securities Exchange.

These closures contributed to lighter regional trading volumes despite the strong performance across Asia.

Outlook

Looking ahead, investors will monitor whether South Korea can maintain momentum above 8,400 and whether Japan continues its breakout beyond 66,000.

China’s ongoing weakness remains a key concern for regional sentiment, while India’s recent pullback will be watched for signs of stabilization. Continued strength in technology-driven markets could help sustain Asia’s broader uptrend if investor confidence remains intact.

For now, Asia’s markets have regained a bullish tone, with strong gains in Korea, Japan, and Australia outweighing weakness in China and India.