Asian markets opened higher on Tuesday, December 2, with risk appetite improving across much of the region during the morning session. Investors are navigating shifting expectations around global monetary policy, steadying bond yields, and early signals of stabilizing demand. While broader Asia is active, trading volumes from the Gulf are lighter due to National Day closures in the United Arab Emirates, affecting both the Dubai Stock Exchange and the Abu Dhabi market.

South Korea: KOSPI Leads Regional Gains

South Korea’s KOSPI Composite Index posted the strongest performance in Asia this morning, rising 1.21 percent to 3,967.91. The rally reflects renewed demand for technology, semiconductor, and industrial shares, which continue to benefit from improving global supply-chain conditions and optimism around next-year earnings. Foreign investor inflows have strengthened compared to the previous week, signaling growing conviction that South Korea may benefit from a broader recovery in the global tech cycle. Domestic institutional activity has also remained robust, helping reinforce the upward move in the index.

Hong Kong: Hang Seng Extends Momentum

The Hang Seng Index climbed 0.67 percent to 26,033.26 in early trading, adding to recent gains fueled by improving sentiment around China’s economic direction. Investors continue to respond positively to incremental policy support, including targeted liquidity measures and sector-specific stimulus aimed at stabilizing the property market. While structural concerns remain, market participants appear increasingly confident that authorities will maintain an accommodative stance heading toward year-end. Broader participation across consumer, healthcare, and technology sectors helped lift the index this morning.

Mainland China: SSE Composite Strengthens

China’s SSE Composite Index gained 0.65 percent to 3,914.01 as traders reacted to signals of steady economic activity and firming domestic consumption. The morning session saw broad-based buying interest, with consumer, manufacturing, and green-energy names performing well. Despite the ongoing drag from China’s real-estate sector, investors are positioning for a more proactive policy stance in the coming months. The government’s recent commitments to stabilizing credit conditions have helped reduce volatility and improve short-term sentiment across Shanghai’s equity market.

Japan: Yen Strengthens as Nikkei Edges Higher

Japan’s market delivered modest gains, with the Nikkei 225 rising 0.28 percent to 49,439.72. The Japanese Yen Index strengthened 0.43 percent to 64.32, driven by expectations that the Bank of Japan may gradually shift away from its long-standing ultra-loose policy as domestic wage growth pressures build. A stronger yen limited upside for major exporters, though investor appetite for industrial and high-tech shares remained intact. Traders continue to evaluate Japan’s inflation trajectory and how the BOJ may respond over the coming months, factors that could influence currency and equity volatility.

Australia: ASX Rises While AUD Softens

Australia’s S&P/ASX 200 advanced 0.15 percent to 8,578.40 during the morning session. Gains were led by financials, select miners, and defensive sectors, reflecting a cautious but optimistic tone. However, the Australian Dollar Index slipped 0.12 percent to 65.43, pressured by softer commodity markets and uncertainty around upcoming domestic macroeconomic data. Investors are particularly focused on energy-price movements and China’s import outlook, both of which remain influential drivers for Australian equities.

India: Sensex Slips Ahead of Key Data

India’s S&P BSE Sensex eased 0.08 percent to 85,641.90, making it one of the few regional laggards this morning. The slight decline appears tied to profit-taking in heavyweight sectors after last week’s upward momentum. Investors are turning cautious ahead of upcoming inflation releases and central-bank policy developments, both of which may influence near-term positioning. Despite the dip, underlying economic conditions in India remain resilient, supporting expectations for continued long-term growth in corporate earnings.

Outlook for the Remainder of the Trading Day

As the session progresses, Asian investors will closely track global bond yields, China’s economic indicators, currency movements, and geopolitical developments. With Dubai and Abu Dhabi markets closed for National Day, cross-regional trading flows may remain subdued, though overall liquidity across Asia appears stable. Looking ahead, opportunities may emerge in technology, consumer growth sectors, and export-driven industries if volatility remains contained. Key risks include shifts in U.S. monetary expectations and external macro pressures, which could shape market direction through the rest of the week.