Asian markets finished the January 27 session on a firm footing, with most major benchmarks posting solid gains as investor confidence improved across the region. A combination of resilient economic expectations, easing volatility, and supportive currency moves helped drive a constructive close, even as select markets navigated holiday-related closures.

South Korea and Hong Kong Drive Regional Equity Strength

The standout performers in Asia were South Korea and Hong Kong, where equity markets delivered decisive gains by the close. The KOSPI Composite Index surged 2.73% to 5,084.85, marking one of its strongest sessions in recent weeks. Gains were broad-based, with technology, industrials, and export-oriented stocks benefiting from improving global growth sentiment and a stabilizing currency backdrop.

Hong Kong equities also posted a strong advance, with the Hang Seng Index rising 1.35% to 27,126.95. Investors continued to rotate into Chinese and regional growth names amid optimism around policy support and improving earnings visibility. Financials and consumer-related stocks contributed meaningfully to the move, reinforcing the sense that risk appetite is gradually rebuilding after recent volatility.

Elsewhere, Japan’s Nikkei 225 added 0.85% to close at 53,333.54, supported by gains in manufacturing and automation stocks. The rebound followed prior weakness and suggested that investors remain willing to selectively add exposure to Japanese equities despite currency fluctuations and global macro uncertainty.

Currency Movements and Broad Market Participation Support Sentiment

Currency markets played a supportive role in shaping the day’s tone. The Japanese Yen Index advanced 0.96% to 64.85, while the Australian Dollar Index rose 0.32% to 69.15. These moves reflected steady demand for regional currencies and reduced pressure from external funding conditions, helping stabilize equity valuations.

China’s onshore market posted modest gains, with the SSE Composite Index up 0.18% to 4,139.90. While the move was restrained compared with regional peers, it underscored a cautious but constructive stance among domestic investors. Market participants remain focused on policy signals and economic data for confirmation of sustained recovery momentum.

India’s S&P BSE SENSEX also closed higher, gaining 0.39% to 81,857.48. The advance came despite ongoing concerns around valuations and global demand, suggesting that domestic factors and longer-term growth expectations continue to provide underlying support.

Australia Holiday Limits Liquidity but Regional Momentum Holds

Australia’s equity market was the Sydney Stock Exchange remained closed in observance of Australia Day. The holiday reduced overall Asia-Pacific trading volumes, but it did not derail the positive regional trend. Futures and currency indicators linked to Australia remained firm, indicating that investor positioning remains constructive heading into the next session.

The S&P/ASX 200 reference level stood at 8,941.60, reflecting a 0.92% gain from the prior trading day, and signaling that Australian equities are likely to reopen with a stable to positive bias if global conditions remain supportive.

Despite the partial closure, participation across other major Asian markets was sufficient to sustain momentum, highlighting the depth of regional demand and the improving tone across Asia’s financial landscape.

Looking ahead, investors will closely monitor upcoming global macro data, central bank commentary, and earnings updates to assess whether this rebound can extend. Sustained strength in currencies, continued stabilization in China-related assets, and follow-through in technology and export sectors could provide further upside. However, risks remain tied to global growth uncertainty, policy shifts, and potential volatility around key economic releases. For now, Asia’s strong close suggests a cautiously optimistic setup as markets move deeper into the first quarter of the year.