Asian markets opened Thursday, February 11, with broad-based gains in the morning session, reflecting improving investor sentiment across the region. Equity benchmarks advanced across Japan, Australia, China, India, and Hong Kong, supported by renewed risk appetite, stabilizing currency markets, and constructive global macro signals. The tone suggests a cautious but confident start to the trading day for Asia-Pacific markets, as capital rotates back into equities following recent volatility in global financial markets.

Japan and Regional Market Leadership

Japan led the regional rally, with the Nikkei 225 surging 2.28% to 57,650.54, reinforcing its position as the strongest major Asian equity performer this week. Market momentum remains driven by foreign inflows, strong export-sector earnings expectations, and improved sentiment around corporate governance reforms. The Japanese yen index also advanced 0.99%, signaling stabilizing currency conditions and reduced FX volatility, which typically supports equity valuations and international capital participation.

An important institutional factor shaping today’s session is Japan’s National Founding Day, observed by the Tokyo Stock Exchange. While trading activity can be lighter during the holiday period, investor positioning remains active through derivatives, regional ETFs, and offshore instruments. For global and Israeli investors, this creates a nuanced dynamic where price discovery continues even amid reduced domestic market participation.

Australia also posted solid gains, with the S&P/ASX 200 rising 1.21% to 8,975.10. Strength in financials, commodities-linked stocks, and infrastructure names reflects renewed confidence in Asia-Pacific growth resilience. However, the Australian Dollar Index declined 0.21%, suggesting that currency markets remain more cautious than equities, particularly as investors reassess global interest rate trajectories.

China, Hong Kong, and Regional Risk Dynamics

Greater China markets delivered moderate but positive performance. The Hang Seng climbed 0.58% to 27,183.15, supported by selective buying in technology, financial services, and consumer names. Meanwhile, the SSE Composite Index advanced 0.13% to 4,128.37, reflecting steady but controlled risk-taking in mainland Chinese markets.

These moves highlight a structural shift toward stability rather than speculative momentum. Institutional investors appear focused on balance-sheet strength, earnings visibility, and policy alignment rather than short-term rallies. For international portfolios, including Israeli institutional funds and high-net-worth investors, China exposure is increasingly approached through selective sector allocation rather than broad index positioning.

South Korea’s KOSPI Composite Index added 0.07% to 5,305.27, signaling steady investor confidence in semiconductor, industrial, and export-driven sectors, despite ongoing global trade and supply-chain uncertainties.

India, Capital Flows, and Emerging Market Positioning

India’s S&P BSE SENSEX rose 0.25% to 84,273.92, maintaining its long-term bullish structure. Indian equities continue to benefit from strong domestic consumption, digital infrastructure growth, and sustained foreign investment interest. Global investors increasingly view India as a structural growth market rather than a cyclical trade, reinforcing long-term capital inflows.

For Israeli investors and global asset managers, Asia’s current setup reflects a broader theme: diversification away from single-market exposure toward multi-regional portfolios that balance growth economies with developed-market stability. The combination of rising Asian equities, stabilizing currencies, and selective emerging market strength supports this strategic shift.

Market Outlook and What to Watch Next

Looking ahead, markets will remain sensitive to global macro signals, including inflation data, central bank communication, bond yield movements, and geopolitical risk developments. Key factors to monitor include currency volatility in the Asia-Pacific region, capital flow trends into emerging markets, and sector rotation between growth, value, and defensive assets. Opportunities are emerging in high-quality Asian equities, infrastructure-linked sectors, and export-driven economies, while risks remain tied to monetary tightening cycles, global liquidity conditions, and policy uncertainty. For sophisticated investors, the current environment favors disciplined positioning, selective exposure, and strategic diversification as Asia continues to shape global market direction in early 2026.