Asian markets ended February 23, 2026, on a mixed note as strong gains in Hong Kong and South Korea contrasted with declines in Japan and mainland China. Trading conditions remained influenced by holiday-related closures in key financial centers, which continued to shape liquidity and investor participation across the region.

The absence of full regional participation resulted in fragmented performance, with domestic factors driving movements rather than synchronized cross-border flows.

Hong Kong Leads with Strong Rally

Hong Kong’s Hang Seng Index climbed 2.35% to 27,034.80, delivering the strongest performance among major Asian benchmarks. The rally suggests renewed buying interest in technology and financial shares, possibly reflecting bargain hunting after recent consolidation.

South Korea’s KOSPI Composite Index rose 0.65% to 5,846.09, extending recent upward momentum. The steady advance indicates improving investor confidence and continued inflows into Korean equities.

India’s S&P BSE Sensex gained 0.58% to 83,294.66, reflecting stable domestic sentiment despite broader regional volatility. The modest increase signals resilience in financial and consumer-focused sectors.

Japan and China Weigh on Regional Tone

Japan’s Nikkei 225 declined 1.12% to 56,825.70, marking one of the session’s weaker performances. However, the Tokyo Stock Exchange was officially closed in observance of Emperor’s Birthday, reducing trading participation and limiting broader price discovery.

Mainland China’s SSE Composite Index fell 1.26% to 4,082.07, continuing its recent softness. Ongoing caution persists as investors assess economic signals amid holiday-thinned conditions.

Meanwhile, currency markets showed limited volatility. The Japanese Yen Index slipped 0.03% to 64.50, suggesting relative stability, while the Australian Dollar Index rose 0.43% to 70.84, indicating moderate risk appetite.

Australia’s S&P/ASX 200 fell 0.61% to 9,026.00, diverging from gains in parts of the region. The decline may reflect sector-specific weakness, particularly in resource and export-related stocks.

Holiday Closures Limit Regional Liquidity

Several major exchanges remained closed, significantly affecting overall regional activity:

• China — Shanghai Stock Exchange — Chinese New Year
• China — Shenzhen Stock Exchange — Chinese New Year
• Japan — Tokyo Stock Exchange — Emperor’s Birthday

The continued closure of Shanghai and Shenzhen restricted mainland trading flows, while Tokyo’s holiday further reduced participation from one of Asia’s largest equity markets. As a result, liquidity remained uneven and volatility was shaped by localized movements rather than broad regional coordination.

Outlook

As markets progressively reopen and liquidity normalizes, investors will look for clearer direction across Asia. The strong rebound in Hong Kong suggests improving risk appetite, but continued weakness in mainland China and Japan highlights lingering caution.

Upcoming economic releases, currency trends, and global market cues will likely determine whether Asia extends gains or re-enters consolidation. A stabilization in Chinese equities and a rebound in Japan once full trading resumes could strengthen regional momentum. Until then, market performance is expected to remain selective, with volatility influenced by shifting capital flows and post-holiday positioning adjustments.