Asian markets opened the first trading morning of the new year on a cautious and uneven footing, as investors navigated thin liquidity conditions and adjusted portfolios for the months ahead. With several major exchanges closed for New Year’s Day, price action remains selective, driven by local factors rather than broad regional momentum.

India Leads While China Holds Steady

India’s equity market is showing relative strength in the morning session, with the S&P BSE SENSEX rising 0.64% to 85,220.60. The positive tone reflects continued confidence in India’s growth outlook, resilient domestic demand, and sustained foreign investor interest. Financials and large-cap industrial names are providing support, reinforcing India’s role as a preferred allocation within emerging Asia at the start of the year.

In mainland China, the SSE Composite Index is modestly higher, up 0.09% at 3,968.84. The subdued move highlights ongoing caution around China’s economic recovery, as investors balance policy support expectations against lingering concerns over property sector stress and uneven consumer sentiment. With several neighboring markets closed, Chinese equities are trading without strong regional cues.

Japan and Korea Under Pressure as Risk Appetite Softens

Japanese equities are weaker in holiday-thinned conditions, with the Nikkei 225 down 0.37% at 50,339.48. The Tokyo Stock Exchange is on a market holiday, limiting participation and amplifying defensive positioning in futures-linked activity. Currency dynamics are also in focus, as the Japanese Yen Index slips 0.14% to 63.86, reflecting ongoing sensitivity to global interest rate expectations.

South Korea is also trading lower, with the KOSPI Composite Index down 0.15% at 4,214.17. Both the Seoul Stock Exchange and KOSDAQ are referenced in the regional landscape today, as investors remain cautious toward technology and export-oriented names amid uncertainty around global demand trends. Semiconductor-linked stocks are seeing selective profit-taking after strong prior performance.

Australia, Hong Kong, and Currency Signals

Australia’s S&P/ASX 200 is marginally lower, down 0.03% at 8,714.30, though trading conditions are constrained as the Sydney Stock Exchange is closed for New Year’s Day. The Australian Dollar Index is weaker, falling 0.37% to 66.70, suggesting a softer risk tone and sensitivity to commodity and China-related signals.

Hong Kong-linked activity is also subdued, with the Hang Seng Index down 0.87% at 25,630.54, while the Hong Kong Stock Exchange remains closed for the holiday. The decline underscores ongoing caution toward Chinese and regional growth assets, particularly in technology and property-related sectors.

Holiday Closures Shape Regional Dynamics

A significant number of exchanges across Asia and the Middle East are closed today, including those in Bahrain, Indonesia, Jordan, Japan, Kazakhstan, Kuwait, Lebanon, Malaysia, the Palestinian Territory, the Philippines, Qatar, Singapore, Sri Lanka, Taiwan, Thailand, Türkiye, the United Arab Emirates, and Vietnam. These closures are reducing overall market depth and increasing the influence of localized flows, a factor global and Israeli investors should keep firmly in mind when interpreting intraday moves.

Looking Ahead: What Investors Should Watch

As the trading day progresses, attention will remain on how markets behave once full liquidity returns in the coming sessions. Investors will be watching for signals on global interest rate policy, currency stability, and early indications of risk appetite for the new year. For Israeli and global investors, the current environment highlights both opportunity and risk, with selective strength in India contrasting with caution in North Asia. The next few sessions may provide clearer direction as holiday effects fade and macroeconomic themes regain prominence.