Asian markets closed mixed on June 29, 2026, as investors cautiously returned to Chinese equities following last week’s broad market weakness. Strong rebounds in Hong Kong and mainland China helped lift regional sentiment, while South Korea and India remained under modest selling pressure.

The session reflected selective buying across Asia as investors sought opportunities after several weeks of heightened volatility.

Hong Kong and China Lead Regional Recovery

Hong Kong’s Hang Seng Index climbed 1.57% to 23,026.68, posting the strongest gain among the region’s major equity benchmarks.

The advance follows several sessions of weakness and suggests investors selectively returned to Chinese-linked assets after prolonged underperformance. Although the Hang Seng remains well below recent highs, the rebound indicates improving confidence in Hong Kong-listed companies.

China’s SSE Composite Index also advanced 1.16% to 4,073.90, recovering from Friday’s decline and moving further above the 4,000 level. The gain reinforces improving sentiment toward mainland equities and provides additional support for regional markets.

Japan and Australia Extend Gains

Japan’s Nikkei 225 edged higher by 0.15% to 69,468.11, stabilizing after last week’s sharp pullback from record highs above 72,000.

Australia’s S&P/ASX 200 gained 0.68% to 8,823.40, benefiting from renewed buying in financial and commodity-related sectors. The advance suggests investors remain cautiously optimistic toward Australian equities despite recent market volatility.

Together, Japan and Australia contributed to the region’s generally constructive trading tone.

South Korea and India Trade Lower

South Korea’s KOSPI Composite Index slipped 0.20% to 8,394.65, reflecting modest consolidation after several volatile sessions.

India’s S&P BSE Sensex declined 0.50% to 76,712.57, extending a mild pullback as investors took profits following recent gains.

The relatively limited declines suggest selling pressure was contained compared with the sharper corrections seen earlier in June.

Currency Markets Remain Quiet

Currency markets showed only minor movement during the session.

The Japanese Yen Index edged up 0.02% to 61.82, while the Australian Dollar Index slipped 0.28% to 68.93.

The subdued activity indicates investors remained focused on equity positioning rather than making significant shifts into defensive currencies.

Sri Lanka Market Closed for Holiday

Regional participation was modestly reduced as the Colombo Stock Exchange remained closed in observance of Poson Full Moon Poya Day.

The holiday had little impact on the overall direction of Asian markets but slightly reduced trading activity across South Asia.

Outlook

Looking ahead, investors will watch whether Hong Kong and mainland China can extend their recovery and whether Japan can rebuild momentum toward the 70,000 level.

South Korea’s ability to stabilize above 8,300 and India’s effort to regain upward momentum will also remain key indicators of regional sentiment. If buying interest in Chinese equities continues, broader Asian markets could benefit from improving investor confidence entering July.

For now, Asia remains mixed but resilient, with recovering Chinese markets helping offset modest weakness elsewhere and supporting a cautiously optimistic outlook.