Asian markets closed Monday, February 9, 2026, with a powerful rebound as investors re-embraced risk following last week’s choppy and defensive trading. Gains were widespread across North Asia, China, and Australia, signaling a decisive shift in sentiment as confidence returned to equity markets. The session marked one of the strongest regional performances in recent weeks, with investors stepping back into growth and export-oriented sectors.

The rally reflected a combination of oversold conditions, easing volatility, and renewed optimism around global growth prospects. With currencies stabilizing and equity valuations appearing more attractive after recent pullbacks, buyers returned aggressively, lifting nearly all major benchmarks.

South Korea and Japan Lead a Strong Regional Recovery

South Korea delivered the session’s standout performance, with the KOSPI Composite Index surging 4.10% to 5,298.04. Technology and semiconductor stocks powered the advance as investors rotated back into high-growth sectors that had been heavily sold during last week’s downturn. The sharp rebound suggested renewed confidence in Korea’s export-driven economy and its exposure to global manufacturing cycles.

Japan followed closely, with the Nikkei 225 jumping 3.89% to 56,363.94. Exporters, industrials, and automation-related stocks led gains as investors responded to improving risk sentiment and stable currency conditions. The Japanese Yen Index edged down just 0.03%, providing a neutral backdrop that allowed equities to rally without currency-driven pressure.

The strength in both markets highlighted how quickly sentiment can shift when investors perceive that downside risks have eased.

China and Hong Kong Join the Upswing as Confidence Improves

Mainland China also posted a strong advance, with the SSE Composite Index rising 1.41% to 4,123.09. Financials and infrastructure-linked stocks supported the move as expectations of continued policy support and stable liquidity conditions helped anchor sentiment. The gain marked a recovery from recent weakness and suggested that investors are becoming more comfortable with China’s near-term outlook.

Hong Kong’s Hang Seng Index climbed 1.73% to 27,018.52, benefiting from renewed interest in China-linked equities. Technology, financial, and consumer stocks all contributed to the rally, as easing global risk concerns prompted investors to re-enter positions. While volatility remains a factor, the strong close pointed to a clear improvement in sentiment toward Hong Kong equities.

Australia and India Advance as Risk-On Tone Broadens

Australia’s S&P/ASX 200 rose 1.85% to 8,870.10, supported by gains in mining, energy, and financial stocks. The rally coincided with a sharp rise in the Australian Dollar Index, which jumped 1.15%, reflecting renewed demand for commodity-linked currencies and improved confidence in global growth trends.

India also ended higher, with the S&P BSE Sensex gaining 0.59% to 84,073.61. Domestic-focused sectors and financials led the advance as investors selectively added exposure following recent volatility. While India’s gains were more modest than those in North Asia, the positive close reinforced the broader regional recovery.

Currency Strength Reinforces Equity Momentum

Currency markets complemented the equity rally, particularly in the Asia-Pacific region. The strength of the Australian dollar signaled improved risk appetite and reduced concern around external financing conditions. Meanwhile, the relatively stable yen helped avoid renewed pressure on Japanese exporters, allowing equity gains to build.

The alignment between currency and equity performance underscored the session’s risk-on character and suggested that investors are becoming more comfortable with regional macro conditions.

Outlook: Momentum Builds, but Volatility Remains a Factor

Looking ahead, Asian markets appear to have regained momentum after last week’s turbulence, but investors are likely to remain attentive to global macro signals. Upcoming economic data, corporate earnings updates, and central bank commentary will be critical in determining whether the rally can be sustained. While the breadth of Monday’s gains points to improving confidence, volatility has not fully receded. As a result, markets may continue to favor selective exposure, with investors balancing renewed optimism against the potential for further sharp swings as February trading unfolds.