Asian equities kicked off Friday’s session on a strong note, with most major indices trading in positive territory. Investor sentiment was buoyed by optimism surrounding U.S. market resilience and improving regional economic indicators. However, trading volume was slightly subdued as Taiwan’s markets remained closed for the national Double Tenth Day holiday.

Japan and South Korea Drive Early Momentum

Japan’s Nikkei 225 rose 1.77% to 48,580.44, extending its week-long rally fueled by tech and auto shares. A weaker yen, with the Japanese Yen Index slipping 0.24%, supported exporters like Toyota and Sony, as investors bet the Bank of Japan will maintain accommodative policy through the year-end.

In South Korea, the KOSPI Composite Index surged 2.70% to 3,549.21, leading regional gains. Strong performances from semiconductor heavyweights like Samsung Electronics and SK Hynix helped lift the benchmark, amid expectations of continued demand recovery in the global chip market. The rally comes as foreign investors increased net purchases, signaling renewed confidence in South Korea’s tech-driven economy.

China and India Extend Gains on Growth Optimism

Mainland Chinese equities also advanced, with the SSE Composite Index rising 1.32% to 3,933.97, as investors welcomed signs of policy stability and potential stimulus in the fourth quarter. Optimism around consumer spending and easing deflationary pressures further supported sentiment.

India’s S&P BSE SENSEX climbed 0.49% to 82,172.10, hitting a fresh intraday high as banking and industrial stocks continued to outperform. Analysts noted that India’s domestic growth story remains intact, with strong corporate earnings and steady foreign inflows sustaining momentum into the final quarter of the year.

Mixed Signals in Australia and Hong Kong

Australia’s S&P/ASX 200 inched up 0.25% to 8,969.80, supported by gains in mining and financial shares, though the Australian Dollar Index weakened 0.43%. Investors remained cautious ahead of key inflation data next week that could influence the Reserve Bank of Australia’s policy stance.

Meanwhile, Hong Kong’s Hang Seng Index dipped 0.29% to 26,752.59, reflecting ongoing weakness in China-linked tech and property names. Market sentiment remained fragile as investors await further clarity on Beijing’s support measures for the sector.

Despite the overall upbeat tone across Asia, trading volumes were lighter due to Taiwan’s Double Tenth Day holiday, with the Taiwan Stock Exchange closed for the day. Market participants noted that the absence of Taiwanese investors reduced cross-border liquidity in morning trade.

Outlook: Monitoring Policy Shifts and Currency Moves

As the trading day unfolds, investors will be closely watching developments in currency markets and policy signals from central banks. A sustained weakening in the yen could extend Japan’s equity rally, while fresh macro data from China and Australia next week may shape short-term sentiment. With global risk appetite improving and holiday-related thin liquidity in play, regional markets could remain volatile. Going forward, attention will shift toward earnings releases and monetary policy guidance as investors assess whether Asia’s recovery momentum can be sustained into year-end.