Asian markets kicked off Thursday trading on a strong note, with Japan and South Korea driving regional optimism. Gains in technology and industrial shares lifted the broader sentiment, while global peers in the U.S. and Europe delivered subdued results overnight. The focus now turns to inflation indicators and policy signals that could shape the next leg of the rally across Asia’s major indices.

Japan and Korea Power Morning Gains

Japan’s Nikkei 225 jumped 2.17% to 51,307.65, extending its winning streak as investors welcomed upbeat corporate earnings and stable economic data. The rally was led by exporters and semiconductor stocks, supported by a weaker yen that continues to favor global competitiveness.

South Korea’s KOSPI Composite Index followed with a robust 1.76% climb to 4,081.15, buoyed by strong inflows into tech and chipmaking giants. Market watchers noted that foreign investors turned net buyers after several weeks of outflows, reflecting renewed confidence in Asia’s growth prospects heading into the final quarter of 2025.

China and India Show Steady Momentum

China’s Shanghai Composite (000001.SS) rose 0.70% to 4,016.33, as traders assessed improving industrial activity and early signs of policy support from Beijing. While concerns about property debt linger, Beijing’s targeted measures toward liquidity and infrastructure spending helped ease investor anxiety.

India’s S&P BSE Sensex edged up 0.44% to 84,997.13, continuing its gradual ascent. Gains were broad-based across financials and energy names, supported by foreign portfolio inflows and resilience in domestic demand. Analysts say India’s sustained growth momentum remains a bright spot in the region, helping offset global uncertainty.

Regional Currency and Commodity Moves

The broader currency landscape in Asia was relatively stable on Thursday morning. The Japanese Yen Index eased 0.40% to 65.50, while the Australian Dollar Index slipped 0.17% to 65.73. This currency mix provided mild tailwinds for exporters but added some pressure to import-dependent sectors.

Elsewhere, Hong Kong’s Hang Seng Index slipped 0.33% to 26,346.14, weighed by profit-taking in technology and property counters. Australia’s S&P/ASX 200 fell 0.96% to 8,926.20 as miners and energy stocks retreated following weaker commodity price signals.

Global Backdrop: Mixed but Steady

Global sentiment remains balanced, with Wall Street closing on a muted note. The Nasdaq gained 0.55% to 23,958.47, while the S&P 500 was flat at 6,890.59. In Europe, the FTSE 100 added 0.61%, offsetting mild losses in the DAX and CAC 40.

Investors continue to monitor interest rate expectations, as recent economic indicators suggest central banks could keep monetary policy steady in the near term. Meanwhile, the U.S. Dollar Index strengthened to 99.14, signaling cautious positioning ahead of upcoming economic releases.

Outlook: Monitoring Policy Signals and Earnings

Asian investors will keep a close eye on global monetary policy trends and fresh corporate earnings over the coming days. Japan’s earnings season and China’s upcoming PMI data could steer sentiment in early November. While optimism remains supported by resilient regional growth and foreign capital inflows, volatility could resurface if inflation data surprises or if central bank rhetoric shifts toward tightening.

For now, Asia’s equity momentum remains strong — powered by Japan and Korea’s gains — but sustained performance will hinge on the balance between policy clarity, global growth, and investor risk appetite.