Asian markets closed Wednesday, January 28, 2026, with a strong upward bias as investor sentiment remained firmly constructive across much of the region. Momentum carried over from the previous session, supported by robust gains in Hong Kong and South Korea and reinforced by notable strength in Asia-Pacific currencies. While a handful of markets posted modest moves, the overall tone remained decisively risk-on.

The session unfolded amid improving confidence around regional growth prospects and stable global financial conditions. Currency appreciation, easing volatility, and broad participation across equity sectors helped sustain buying interest, even as select markets faced holiday-related trading constraints.

Hong Kong and South Korea Extend Regional Leadership

Hong Kong delivered the strongest performance of the day, with the Hang Seng Index surging 2.35% to 27,765.26. The rally reflected continued inflows into China-linked equities, particularly financials, technology, and consumer-related stocks. Investors appeared increasingly comfortable adding exposure as expectations of supportive policy conditions and improving earnings visibility gained traction.

South Korea also maintained its leadership position, with the KOSPI Composite Index rising 1.69% to 5,170.81. Gains were broad-based, led by technology, industrials, and export-oriented companies. The move extended the market’s recent advance and underscored strong international demand for Korean equities, particularly in sectors tied to global supply chains and advanced manufacturing.

Japan’s Nikkei 225 closed marginally higher, adding 0.05% to 53,358.71. While the gain was modest, it reflected consolidation after recent advances rather than a loss of momentum. Investors remained selective, balancing optimism around corporate earnings with sensitivity to currency movements.

Currency Strength Supports Equities Across the Region

Currency markets played a central role in shaping sentiment during the session. The Australian Dollar Index jumped 1.38% to 70.10, while the Japanese Yen Index climbed 1.28% to 65.68. The synchronized strength across major regional currencies signaled improving confidence in Asia-Pacific fundamentals and reduced concern around external financial pressures.

A stronger yen typically introduces caution for Japanese exporters, but its move was interpreted more broadly as a sign of regional stability rather than a disruptive shock. Meanwhile, the Australian dollar’s advance reflected renewed appetite for commodity-linked and growth-sensitive currencies, reinforcing confidence in regional demand trends.

China’s SSE Composite Index advanced 0.27% to 4,151.24, extending its gradual upward trajectory. Although gains were restrained, the steady climb highlighted ongoing support from domestic investors and expectations of continued policy stability. India’s S&P BSE Sensex added 0.56% to 82,316.02, recovering from recent softness as financials and select industrial stocks attracted buying interest.

Australia Softens Slightly as Malaysia Closes Early for Holiday

Australia’s equity market underperformed regional peers, with the S&P/ASX 200 slipping 0.09% to 8,933.90. The mild decline followed several sessions of gains and appeared to reflect profit-taking rather than a shift in broader sentiment. Strength in the Australian dollar suggested that underlying confidence remains intact despite the modest equity pullback.

In Southeast Asia, Malaysia’s Kuala Lumpur Stock Exchange closed early in observance of the Chinese New Year holiday. The early closure reduced regional trading volumes slightly but had limited impact on overall market direction, as activity in Northeast Asia remained robust.

The combination of strong performances in Hong Kong and South Korea more than offset softer moves elsewhere, maintaining a positive regional close.

Looking ahead, investors will watch closely for follow-through in Hong Kong and South Korea, where momentum has been strongest. Continued currency stability, earnings updates, and policy signals from China will remain key drivers of sentiment. While holiday-related disruptions may temporarily affect liquidity in parts of the region, the broader trend suggests markets are entering a phase of constructive consolidation with upside potential, provided global conditions remain supportive and volatility stays contained.