Asian markets opened Tuesday’s morning session on a broadly positive note, with risk appetite returning to several key benchmarks across the region. Investors are navigating a complex mix of currency movements, domestic economic signals, and global macro themes, including interest rate expectations and commodity price dynamics. As of February 24, regional performance reflects selective optimism rather than a uniform rally.

Hong Kong and Japan Lead Regional Gains

The standout performer in early trading is the Hang Seng, which surged 2.53% to 27,081.91. The sharp move higher suggests renewed buying interest in Hong Kong-listed technology and financial stocks, sectors that have been highly sensitive to capital flows and mainland China policy expectations. The rebound may also reflect short covering and tactical positioning by global investors seeking exposure to Asia’s reopening and stimulus narratives.

In Japan, the Nikkei 225 rose 0.67% to 57,205.48, extending its upward momentum. Japanese equities continue to benefit from strong corporate earnings, shareholder-friendly reforms, and ongoing foreign inflows. Notably, the Japanese Yen Index climbed 0.27% to 64.67, signaling a modest strengthening of the yen. A firmer currency can weigh on exporters, but current levels suggest currency stability rather than sharp appreciation, allowing equity markets to maintain upward traction.

India Extends Strength While Korea and Australia Slip

India’s S&P BSE SENSEX advanced 0.58% to 83,294.66, hovering near record territory. Indian equities have been supported by robust domestic growth, resilient corporate profitability, and continued foreign institutional investment. Structural themes such as manufacturing expansion, digitalization, and infrastructure spending remain central to the bullish case for Indian markets in 2026.

By contrast, South Korea’s KOSPI Composite Index edged down 0.18% to 5,835.85. The modest pullback may reflect profit-taking in semiconductor and technology heavyweights after recent gains. Given Korea’s export-driven economy, investors are closely watching global demand indicators, particularly from the United States and China.

Australia presented a mixed picture. The S&P/ASX 200 slipped 0.08% to 9,018.40, while the Australian Dollar Index fell 0.40% to 70.56. The softer currency could provide medium-term support for exporters and commodity producers, but near-term equity performance appears constrained by global commodity price volatility and shifting rate expectations.

Mainland China Under Pressure Amid Policy Uncertainty

The notable underperformer in the region is the SSE Composite Index, which declined 1.26% to 4,082.07. Mainland Chinese equities continue to face headwinds linked to property sector stress, uneven consumer recovery, and investor skepticism over the scale and effectiveness of policy stimulus.

While authorities have introduced targeted measures to support liquidity and stabilize growth, markets appear to be waiting for clearer signals of large-scale fiscal or structural reforms. The divergence between Hong Kong’s strong rally and Shanghai’s decline underscores the distinction between offshore and onshore investor sentiment.

Looking ahead, market participants will closely monitor currency movements, central bank commentary, and macroeconomic releases across Asia. Inflation trends, capital flows, and geopolitical developments remain key risk factors for regional equities. For global and Israeli investors, selective positioning across Asia’s major markets may offer opportunities, particularly in economies demonstrating earnings resilience and policy clarity. However, volatility is likely to persist in the near term, making disciplined risk management and sector rotation critical as Tuesday’s session unfolds.