Asian markets closed higher on Thursday, November 6, as regional investors reacted positively to improving global risk sentiment and encouraging local economic data. The rally was led by Hong Kong and Japan, while gains across mainland China, South Korea, and Australia added further momentum. Market optimism was buoyed by expectations that central banks across the region would maintain supportive policies to sustain economic recovery into year-end.

Hang Seng Surges on Tech and Property Rebound

The Hang Seng Index surged 2.12% to 26,485.90, marking one of its strongest sessions in recent weeks. Tech giants and Chinese property developers led the rally as sentiment improved following reports of new fiscal and liquidity support measures in mainland China. Investors welcomed Beijing’s signals of increased policy flexibility, which are expected to bolster corporate balance sheets and stimulate consumption in the coming quarters.

Notably, Hong Kong–listed technology stocks extended their rebound, reflecting optimism over renewed global demand and improving export activity. Market strategists observed that bargain-hunting and short-covering also contributed to the sharp gains, as valuations across Chinese equities remain attractive compared to global peers.

The broader recovery in Hong Kong’s market suggests that investors are cautiously regaining confidence after months of volatility driven by global monetary tightening and uneven growth across Asia.

Japan’s Nikkei Rises as Yen Weakens and Exporters Gain

Japan’s Nikkei 225 climbed 1.34% to 50,883.68, supported by strong performances from exporters and industrial stocks. The Japanese Yen Index fell 0.30% to 64.88, providing a boost to multinational corporations that benefit from a weaker currency. A softer yen improves export competitiveness, which in turn lifts earnings prospects for automotive, machinery, and electronics manufacturers.

Investor sentiment in Tokyo was further lifted by expectations that the Bank of Japan will maintain its ultra-loose monetary stance, keeping borrowing costs low to encourage economic activity. The index’s recent gains underscore renewed investor confidence in Japan’s corporate earnings resilience, particularly within technology and manufacturing sectors.

Analysts also pointed out that the Nikkei’s upward momentum aligns with the global shift back toward equities, as investors look for regions showing strong fundamentals and stable currency dynamics amid fluctuating global growth.

Broad Gains Across the Region as Policy Support and Sentiment Improve

Elsewhere in Asia, gains were broad-based. The SSE Composite Index in Shanghai rose 0.97% to 4,007.76, as positive data on industrial production and retail sales bolstered investor optimism. The KOSPI Composite Index in South Korea advanced 0.55% to 4,026.45, with semiconductor and energy stocks leading the way amid signs of improving export demand.

In Australia, the S&P/ASX 200 inched 0.30% higher to 8,828.30, supported by steady resource and financial shares. The Australian Dollar Index rose 0.22% to 65.05, reflecting resilience in commodity-linked currencies as global risk appetite improved. Meanwhile, India’s S&P BSE Sensex edged down 0.08% to 83,393.07, as profit-taking weighed on banking and technology stocks after recent highs.

The overall tone across Asian markets was one of cautious optimism, with investors balancing hopes for policy stability against ongoing global macro risks, including potential geopolitical tensions and slower external demand.

Outlook: Opportunities Amid Policy Stability and Global Uncertainty

Looking ahead, investors will be closely monitoring regional inflation data, central bank communications, and upcoming trade figures to gauge the strength of Asia’s economic recovery. The combination of a weaker yen, modest dollar softness, and ongoing fiscal support in China could continue to underpin regional equities. However, volatility may resurface if global inflation reaccelerates or geopolitical tensions flare.

Still, the improving policy environment and strong corporate fundamentals across Asia present opportunities for medium-term investors. As 2024 approaches, the focus will likely shift toward export recovery, monetary coordination, and sustained capital inflows into Asia’s growth-driven markets, particularly in Japan, China, and India.