Asian markets closed mixed on August 4, 2026, with renewed buying lifting South Korea and Australia after recent weakness, while Hong Kong and India retreated. Japan and mainland China also edged higher, reflecting selective investor confidence despite lingering concerns over regional economic momentum.

The session highlighted the continued divergence across Asia, where recovery in some markets contrasted with ongoing profit-taking in others.

South Korea Leads Regional Rebound

South Korea’s KOSPI Composite Index climbed 1.62% to 6,358.95, posting the strongest performance among Asia’s major equity benchmarks.

The gain followed Monday’s sharp decline and reflected renewed buying in semiconductor, artificial intelligence, and technology-related companies. Although the KOSPI remains well below its highs from earlier in the year, Tuesday’s rebound suggests investors are selectively returning to Korean equities after recent heavy selling.

The recovery offers tentative signs of stabilization in one of Asia’s most volatile stock markets.

Australia Extends Above 9,100

Australia’s S&P/ASX 200 advanced 1.40% to 9,145.80, recording the second-strongest gain in the region.

The benchmark strengthened as investors returned to financial and mining stocks, helping the index extend above the 9,100 level. Australia’s relatively stable economic backdrop continued to support investor confidence despite mixed performance elsewhere across Asia.

The advance reinforces Australia’s position among the region’s more resilient equity markets.

Japan and China Post Modest Gains

Japan’s Nikkei 225 rose 0.32% to 63,957.53, recovering part of Monday’s decline as investors cautiously returned to export-oriented manufacturers and technology companies.

China’s SSE Composite Index added 0.33% to 3,822.28, extending its gradual recovery while remaining below the important 4,000 threshold. The modest gain suggests investor sentiment toward mainland Chinese equities has stabilized but remains cautious.

Both markets contributed positively to the region’s mixed performance.

Hong Kong and India Retreat

Hong Kong’s Hang Seng Index fell 0.60% to 25,852.92, giving back part of its recent gains while remaining comfortably above the 25,000 level.

India’s S&P BSE Sensex declined 0.48% to 78,262.13, reflecting moderate profit-taking after the market’s recent outperformance relative to many regional peers.

The declines illustrate that investors continue rotating selectively between Asian markets rather than broadly increasing equity exposure.

Currency Markets Remain Stable

Currency markets recorded only modest movements.

The Japanese Yen Index rose 0.29% to 63.61, indicating continued strength in the yen.

Meanwhile, the Australian Dollar Index slipped 0.46% to 70.00 despite Australia’s strong equity performance, suggesting foreign exchange markets remained relatively subdued compared with stock markets.

Overall, currency trading reflected balanced investor positioning across the region.

Outlook

Looking ahead, investors will watch whether South Korea can extend its recovery after Tuesday’s rebound and whether Australia can maintain momentum above the 9,100 level.

Attention will also remain focused on China’s effort to recover toward the 4,000 mark and Japan’s ability to continue rebuilding after recent volatility. Meanwhile, Hong Kong and India will be monitored to determine whether Tuesday’s declines represent temporary consolidation or the beginning of a broader pullback.

For now, Asia continues to display mixed but improving sentiment, with selective buying in South Korea, Australia, Japan, and mainland China helping offset weakness in Hong Kong and India as investors cautiously position for the weeks ahead.