Asian markets ended February 18, 2026, mostly higher as Japan spearheaded gains in a session still heavily influenced by Lunar New Year closures. While several open markets advanced, participation remained constrained due to widespread exchange shutdowns across the region. Trading volumes were moderate, and price movements reflected selective positioning rather than broad-based regional momentum.

Holiday-driven liquidity conditions continued to shape the overall market tone, limiting cross-border capital flows and amplifying localized dynamics.

Japan Leads Regional Advance

Japan’s Nikkei 225 climbed 1.02% to 57,143.84, marking the strongest performance among major open markets. The advance suggests renewed investor confidence following recent consolidation. Export-oriented stocks likely benefited from a slightly weaker yen, as the Japanese Yen Index declined 0.33% to 65.25.

Australia’s S&P/ASX 200 rose 0.54% to 9,007.00, supported by steady performance in financial and commodity-linked sectors. The Australian Dollar Index edged up 0.11% to 70.83, reflecting stable currency conditions and balanced capital flows.

Hong Kong’s Hang Seng gained 0.52% to 26,705.94, while India’s S&P BSE Sensex advanced 0.34% to 83,737.54. Both markets showed resilience despite broader regional inactivity, suggesting selective buying interest in open exchanges.

Mainland China Extends Decline

In contrast, China’s SSE Composite Index fell 1.26% to 4,082.07, continuing its recent weakness. The decline highlights ongoing caution in mainland equities as investors await full post-holiday participation and clearer economic signals.

South Korea’s KOSPI Composite Index slipped 0.28% to 5,507.01, reflecting modest consolidation following recent volatility. With broader Korean markets partially affected by holiday closures, trading conditions remained thinner than usual.

Overall, while gains dominated among open exchanges, China’s decline underscores persistent caution in parts of the region.

Widespread Lunar New Year Closures Limit Liquidity

Several major Asian exchanges remained closed due to Lunar New Year celebrations, significantly affecting regional trading activity.

Closed exchanges included:

• China — Shenzhen Stock Exchange, Shanghai Stock Exchange — Chinese New Year
• Hong Kong — Hong Kong Stock Exchange — Chinese New Year
• Singapore — Singapore Stock Exchange — Chinese New Year
• South Korea — Seoul Stock Exchange, KOSDAQ — Korean New Year
• Taiwan — Taiwan Stock Exchange — Chinese New Year
• Vietnam — Hanoi Stock Exchange, Ho Chi Minh City Stock Exchange — Lunar New Year

The broad scope of closures limited cross-border flows and reduced overall volatility. With key markets offline, open exchanges operated in a fragmented environment where domestic factors played a larger role than regional trends.

Outlook

As markets progressively resume in the coming sessions, trading volumes are expected to normalize. Historically, post-holiday periods often bring increased volatility as delayed orders and institutional positioning re-enter the market.

Investors will closely monitor whether Japan’s momentum can extend and whether China stabilizes once full participation resumes. Currency movements, particularly in the yen and Australian dollar, may also influence export-sensitive sectors.

For now, Asia’s mostly positive close reflects selective resilience amid constrained liquidity. The return of full regional participation will likely determine whether the current rebound broadens or transitions into another phase of consolidation.