Asian equity markets ended the week on a broadly positive note, with most regional indices advancing on Friday as investors responded to improving global economic signals and signs of stabilization across major Asian economies. The upbeat session, which featured synchronized gains in China, Hong Kong, India and Australia, underscored strengthening confidence heading into the final trading month of the year. While technology, financials and consumer sectors helped lift the region, currency markets remained stable enough to provide a supportive backdrop for risk assets. The primary divergence came from Japan, where the Nikkei pulled back after several strong sessions, reflecting measured profit-taking rather than any marked shift in fundamentals.

KOSPI Leads the Region as Export and Tech Momentum Reassert Strength
South Korea’s KOSPI Composite Index surged 1.78% to 4,100.05, delivering the region’s strongest performance and reinforcing its status as a bellwether for Asian technology and export trends. Heavyweight semiconductor, battery and electronics stocks—sectors tightly linked to global AI and cloud-computing demand—extended their rally as investors positioned for a potential acceleration in global tech investment in early 2026. Stabilizing inflation and firmer export data further bolstered sentiment, illustrating that South Korea’s economic recovery remains anchored in robust industrial output and resilient corporate earnings. For investors, the KOSPI’s performance signals renewed conviction that Korea will remain a major beneficiary of the next wave of technology-led global growth.

Broad-Based Gains in China, Hong Kong, India and Australia Reinforce Regional Momentum
Chinese equities continued to grind higher, with the SSE Composite rising 0.70% to 3,902.81 following steady macroeconomic readings and ongoing policy support from Beijing. While structural concerns around the property sector persist, the stabilization in manufacturing and services has encouraged investors to cautiously re-enter the market. Hong Kong’s Hang Seng Index added 0.58%, supported by financials and technology names. Bargain-hunting in undervalued segments and improving southbound capital flows contributed to the index’s steady advance.

India’s Sensex gained 0.52% to 85,712.37, lifted by financials, consumer goods and energy stocks. Strong domestic demand and consistent earnings momentum continue to differentiate India among major emerging markets. Meanwhile, Australia’s ASX 200 edged up 0.19%, supported by mining, energy and banking stocks as the Australian economy benefits from commodity resilience and a firming currency. Mild profit-taking tempered gains but did little to disrupt the broader upward trend.

Nikkei Pulls Back Amid Profit-Taking and Yen Strength
Japan’s Nikkei 225 declined 1.05% to 50,491.87, marking the only major regional index to finish lower. The modest retreat followed several sessions of pronounced gains, prompting investors to lock in profits ahead of key U.S. and domestic economic data releases. A slight strengthening of the yen added pressure to export-heavy sectors, weighing on automotive and technology shares. Still, analysts argue the pullback is more reflective of tactical rotation than a deterioration in Japan’s broader market backdrop, which remains supported by strong corporate earnings, governance reforms and sustained global demand for Japanese industrial goods.

Outlook: Policy Signals and Tech Demand Will Shape Early 2026 Performance
As the year winds down, investors are focused on upcoming inflation and manufacturing data from China, India and the United States, all of which will play a central role in shaping risk appetite. Global technology demand remains a key variable for export-driven markets such as South Korea and Japan, while any incremental policy easing from Beijing could influence regional sentiment more broadly. Year-end positioning may introduce short-term volatility, but the improving macro backdrop and renewed investor confidence suggest a cautiously constructive outlook for Asian equities as 2026 approaches.