Asian markets opened the week on a positive note this Monday, October 6, with Japan and South Korea driving regional gains. Investors returned from a string of public holidays across Asia, though overall activity remains subdued as key markets like China and Taiwan remain closed.

Japan and South Korea Drive Regional Optimism

Japan’s Nikkei 225 climbed 1.85 percent to 45,769.50, extending last week’s momentum as investors priced in optimism over the yen’s relative stability and strong earnings prospects for export-oriented firms. Automakers and semiconductor companies led the rally, supported by solid global chip demand and a weaker yen that enhances profit margins for Japanese exporters.

In South Korea, the KOSPI Composite Index jumped 2.70 percent to 3,549.21, marking one of its strongest recent sessions. However, the Seoul Stock Exchange and KOSDAQ remain closed for Chuseok, South Korea’s Thanksgiving Day. When markets reopen, traders are expected to focus on upcoming inflation data and the won’s performance against the U.S. dollar.

Muted Trading Amid Regional Holiday Closures

A quieter trading environment prevails across Asia as several major markets observe national holidays. Both the Shanghai Stock Exchange and Shenzhen Stock Exchange are closed for China’s National Day holiday, while the Taiwan Stock Exchange is shut for the Mid-Autumn Festival. Sri Lanka’s Colombo Stock Exchange is also closed for Vap Full Moon Poya Day.

With China offline, regional sentiment is largely driven by global cues, including movements in U.S. Treasuries, commodity prices, and European market performance. Investors remain cautious ahead of the reopening of mainland exchanges later in the week, where trading could reflect shifts in policy expectations and macroeconomic updates.

Regional Currency and Market Highlights

Currency markets were relatively steady in early Monday trading. The Japanese yen index dipped 0.11 percent to 67.84, while the Australian dollar index edged up 0.12 percent to 66.02. The S&P/ASX 200 in Sydney gained 0.32 percent to 9,016.10, supported by energy and mining stocks amid resilient commodity prices.

Hong Kong’s Hang Seng Index fell 0.54 percent to 27,140.92 as weakness in property and technology shares weighed on sentiment. In India, the S&P BSE Sensex rose 0.28 percent to 81,207.17, with strength in banking and energy sectors offsetting global growth concerns.

The SSE Composite Index, though closed today, last settled at 3,882.78, up 0.52 percent before the National Day break. Traders are watching closely for signs of market response once China resumes trading, particularly given recent economic support measures and property market policy adjustments.

Outlook for the Week Ahead

Looking ahead, investors will be closely monitoring the reopening of major Asian markets later this week for signals on post-holiday direction. China’s return to trading will likely set the tone for broader regional momentum, especially if new economic data or policy guidance emerges.

Attention will also turn to currency fluctuations, inflation trends, and central bank communications that could shape investor sentiment. As Japan and South Korea’s strong starts lift optimism, market participants will be watching whether this positive tone can hold amid lingering concerns over global growth, interest rate paths, and geopolitical developments.