Asian markets closed mostly higher on August 25, 2026, as investors returned to equities following Monday’s broad-based decline. South Korea and Australia posted the strongest gains among the major benchmarks, while Japan, India, and mainland China also moved higher. Hong Kong was virtually unchanged, while the Japanese yen and Australian dollar weakened modestly.

The session suggested a degree of stabilization across the region after renewed selling pressure at the start of the week.

South Korea and Australia Lead the Rebound

South Korea’s KOSPI Composite Index rose 0.68% to 6,742.74, recovering after Monday’s 3.12% decline.

The advance brought the benchmark back above the 6,700 level, although it remained below the psychologically important 7,000 threshold. The rebound indicates that investors returned to Korean equities after the previous session’s sharp selloff, although volatility remains elevated.

Australia’s S&P/ASX 200 also gained 0.68%, reaching 9,164.60. The benchmark extended its recovery above the 9,100 level, reinforcing Australia’s relative resilience compared with several other Asian markets.

Japan and India Post Modest Gains

Japan’s Nikkei 225 advanced 0.50% to 65,856.43, recovering part of Monday’s decline.

The move brought the benchmark closer to the 66,000 level as investors cautiously returned to Japanese equities following recent volatility. The market remains sensitive to movements in technology and export-oriented stocks.

India’s S&P BSE Sensex gained 0.21% to 77,529.79, extending its relatively stable performance compared with several other regional markets.

The modest increase kept the Sensex above 77,000 and reinforced the market’s comparatively defensive performance during the recent period of regional volatility.

China Edges Higher While Hong Kong Holds Steady

China’s SSE Composite Index rose 0.19% to 3,889.44, continuing its gradual recovery but remaining below the key 4,000 threshold.

The limited advance suggests investors remain cautious toward mainland Chinese equities, despite the benchmark’s ability to hold above recent lows.

Hong Kong’s Hang Seng Index slipped just 0.02% to 25,511.10, effectively finishing unchanged. The benchmark remained above 25,000 after Monday’s 1.89% decline, indicating that selling pressure eased during Tuesday’s session.

Currency Markets Remain Slightly Weaker

Currency markets moved modestly lower.

The Japanese Yen Index declined 0.07% to 62.86, while the Australian Dollar Index fell 0.31% to 71.48.

The limited movements suggest that currency markets remained relatively calm as investors focused on the recovery in regional equities.

Outlook

Looking ahead, investors will monitor whether South Korea can continue recovering toward the 7,000 level and whether Japan can reclaim 66,000.

China’s ability to move toward the 4,000 threshold will remain a key indicator of regional sentiment, while Hong Kong will need to maintain its position above 25,000 to preserve recent stability.

Australia’s continued strength above 9,100 and India’s ability to hold above 77,000 will also be important measures of relative resilience.

For now, Asia has regained some stability after Monday’s selloff, with gains across most major equity markets signaling a cautious return of risk appetite. However, the region remains highly sensitive to further shifts in investor sentiment following the sharp market swings seen throughout August.