Asian equity markets closed Friday, December 26, 2025, with a mixed and subdued performance as holiday-related closures and reduced participation shaped trading across the region. With Hong Kong and Indonesia closed for Christmas-related holidays, market liquidity remained thin, limiting the scope for strong directional moves. In this low-volume environment, investors focused on selective positioning rather than broad risk-taking, resulting in modest gains in some North Asian markets and mild declines elsewhere.

The session reflected a typical post-holiday tone, with most participants reluctant to make significant adjustments before the year-end. Currency movements were contained, and equity performance largely mirrored local factors rather than broader macroeconomic developments.

Japan and South Korea Post Modest Gains in Quiet Trade

Japan’s Nikkei 225 rose 0.68% to 50,750.39, leading gains among active Asian markets. The advance was supported by steady buying in industrial and technology stocks, as investors took advantage of stable global sentiment and a slightly firmer Japanese yen, which gained 0.14%. Despite the currency strength, exporters held up well, reflecting confidence in earnings visibility heading into early 2026.

South Korea’s KOSPI Composite Index added 0.51% to 4,129.68, extending its recent recovery. Technology and semiconductor stocks saw moderate inflows as investors reassessed valuations after earlier volatility. The muted but positive move suggested improving confidence, even as traders remained mindful of reduced liquidity and the absence of key regional markets.

Both markets benefited from the lack of negative catalysts, allowing incremental gains to build in an otherwise quiet session.

China and Currency Markets Show Stability Rather Than Momentum

China’s SSE Composite Index edged higher by 0.10% to 3,963.68, continuing a gradual stabilization trend. Financials and infrastructure-linked stocks provided limited support, while consumer and property-related shares were mixed. Investors remain cautious on China’s medium-term outlook but appear more comfortable with near-term stability as policy support continues to underpin sentiment.

Currency markets were similarly restrained. The Australian Dollar Index rose 0.08%, while the Japanese yen strengthened slightly, reflecting a balance between risk sentiment and year-end positioning. The lack of sharp currency moves helped keep equity volatility low, reinforcing the session’s subdued character.

Australia and India Lag as Investors Stay Defensive

Australia’s S&P/ASX 200 fell 0.38% to 8,762.70, underperforming the region as mining and energy stocks saw mild selling pressure. Despite the firm Australian dollar, equities struggled to attract buyers in the thin market environment. Investors appeared reluctant to increase exposure ahead of year-end, opting instead for a defensive stance.

India’s S&P BSE Sensex declined 0.43% to 85,040.26, reflecting modest profit-taking after recent gains. Financials and IT stocks weighed on the index, while domestic growth optimism remained intact. The pullback was relatively contained and consistent with consolidation rather than a change in the broader outlook.

Outlook: Holiday Closures, Liquidity, and Year-End Positioning in Focus

Looking ahead, Asian markets are expected to remain influenced by holiday closures, low liquidity, and year-end portfolio adjustments. With Hong Kong and Indonesia closed for Christmas-related observances, trading conditions are likely to stay thin into the final sessions of the year. Investors will continue to monitor currency trends, China’s policy signals, and early indications of 2026 growth momentum. While near-term volatility may remain muted, selective opportunities could emerge as liquidity gradually returns and markets begin positioning for the new year.