Asian Markets End Strong Amid Broad Tech Recovery

Asian markets closed firmly higher on Monday, marking one of the strongest trading sessions of the month as investors piled back into equities amid improving risk sentiment and optimism around global growth. The rally was fueled by a rebound in technology and semiconductor stocks, coupled with expectations that major central banks in Asia will maintain supportive monetary conditions through the end of the year.

Japan’s Nikkei 225 led the region, soaring 3.37% to 49,185.50, driven by gains in chipmakers and exporters. The sharp rise came as a weaker yen and strong U.S. tech earnings boosted investor confidence. Hong Kong’s Hang Seng Index jumped 2.42% to 25,858.83, with notable advances in Chinese internet giants and financials.

South Korea’s KOSPI Composite Index climbed 1.76% to 3,814.69, reflecting robust momentum in the semiconductor sector after global chip demand showed signs of recovery. Meanwhile, China’s SSE Composite Index added 0.63% to 3,863.89, as investors reacted positively to signals of continued fiscal support from Beijing to stabilize property and manufacturing sectors.

Tech Momentum and Policy Support Drive Gains

Analysts noted that the strong performance across Asia was primarily driven by a renewed rotation into growth sectors, particularly technology and manufacturing. Japanese tech leaders rallied on expectations of higher global demand for advanced chips and AI-related components, while Korean and Taiwanese firms benefited from similar sentiment.

In China, the gradual improvement in liquidity conditions and targeted policy measures to support housing developers provided a modest lift to investor confidence. “The market is beginning to price in a stabilization phase for China’s economy,” said one Tokyo-based strategist, noting that inflows into Asian ETFs have picked up in recent weeks.

India’s S&P BSE Sensex rose 0.55% to 84,415.17, supported by steady gains in banking and energy shares. Australia’s S&P/ASX 200 advanced 0.41% to 9,031.90, reflecting improved sentiment following stronger commodity prices and an uptick in consumer spending data.

Currency Markets: Yen Slips, Aussie Firms

In foreign exchange markets, the Japanese Yen Index weakened 0.14% to 66.39, providing a tailwind for Japanese exporters and further supporting the Nikkei’s strong performance. The Australian Dollar Index edged higher by 0.12% to 64.93, reflecting modest gains tied to stronger commodity exports and resilient domestic data.

Traders continue to monitor currency fluctuations closely, as regional exchange rates remain a key factor influencing capital flows and equity performance across Asia.

Outlook: Momentum May Carry Into the Week Ahead

With markets displaying robust gains, analysts expect positive momentum to extend into the next trading sessions, especially if upcoming U.S. tech earnings and Chinese economic data remain supportive. However, caution persists over potential volatility tied to geopolitical developments and shifting global rate expectations.

For now, Asian markets appear to have regained their footing, buoyed by a combination of policy stability, earnings optimism, and investor risk appetite—signaling that the region may continue to lead global equity performance as 2025 draws to a close.