Asian equities started Friday, October 3, on a strong footing, reflecting investor optimism despite reduced participation due to regional holidays. Gains across Hong Kong, Japan, Australia, and India suggest a resilient tone in the region’s capital markets, even as China and South Korea remained shut for National Day celebrations.

South Korea Leads the Gains Despite National Holiday

The standout figure in the region was South Korea’s KOSPI Composite Index, which closed at 3,549.21, up 2.70%. The index was quoted higher even though the Seoul Stock Exchange and KOSDAQ remained closed for National Day. This indicates strong investor demand in futures and international trading activity linked to Korean equities, reflecting global confidence in the country’s corporate and technology sector outlook.

Hong Kong, Japan, and India Register Steady Advances

Hong Kong’s Hang Seng Index gained 1.61% to reach 27,287.12, supported by strength in technology and property-related stocks. Investors were also buoyed by expectations of further stimulus measures from Beijing, even as mainland markets stayed closed. Meanwhile, Japan’s Nikkei 225 rose 0.87% to 44,936.73, with exporters benefiting from a relatively stable yen. In India, the S&P BSE Sensex climbed 0.89% to 80,983.31, highlighting continued foreign fund inflows and optimism over robust domestic consumption trends.

Australia and Currency Movements Shape Regional Sentiment

Australia’s S&P/ASX 200 advanced 1.13% to 8,945.90, led by banking and mining stocks, underscoring confidence in the country’s commodity-driven economy. The SSE Composite in China, though not actively trading due to the National Day holiday, last closed at 3,882.78, a modest 0.52% higher. On the currency front, the Japanese yen index edged down 0.12% to 67.91, while the Australian dollar index slipped 0.28% to 65.94. The moves reflect cautious sentiment among forex traders ahead of key U.S. employment data expected later in the day, which could shift global risk appetite.

Looking forward, investors should watch how Asian markets respond once China and South Korea reopen after the holidays. Pent-up demand, coupled with expectations around global monetary policy and U.S. labor market signals, could drive volatility in the coming sessions. While today’s performance underscores resilience, risks remain tied to currency fluctuations, potential policy shifts in China, and ongoing geopolitical tensions in the region. Market participants will need to balance optimism with caution as trading momentum resumes next week.