Asian markets closed Friday, February 6, 2026, with a mixed performance as investors struggled to find a clear directional bias following a turbulent week. While Japan and India managed to recover modestly, selling pressure persisted in Hong Kong, Australia, and South Korea, reflecting uneven confidence across the region. The session highlighted a market still digesting sharp swings earlier in the week, with positioning cautious ahead of the weekend.

The overall tone suggested stabilization rather than renewed risk-on momentum. Investors appeared focused on balancing bargain-hunting in oversold areas against concerns over global growth signals, currency movements, and stretched valuations in select markets.

Japan and India Find Footing After Recent Volatility

Japan’s Nikkei 225 rose 0.62% to 54,152.62, rebounding modestly after recent declines. Exporters and industrial stocks led the gains as investors selectively re-entered positions following earlier profit-taking. The Japanese Yen Index eased 0.10%, offering limited but supportive relief for overseas earnings and helping underpin the equity recovery.

India also closed higher, with the S&P BSE Sensex advancing 0.32% to 83,580.40. Financials and consumer-oriented stocks contributed to the gains as domestic factors helped insulate the market from broader regional weakness. The move suggested that investors continue to view India as relatively resilient, even as global risk sentiment remains unsettled.

China Flat to Lower as Caution Persists

Mainland China’s SSE Composite Index slipped 0.25% to 4,065.58, reflecting a cautious stance among investors. Financials and industrial stocks were mixed, while consumer sectors remained under pressure. The decline was modest but reinforced the view that momentum in mainland equities has slowed following recent volatility.

The muted move indicated that while policy support continues to anchor sentiment, investors remain hesitant to add aggressively to positions without clearer signals on growth and earnings trends.

Hong Kong and Australia Under Pressure as Risk-Off Mood Returns

Hong Kong was among the session’s weakest performers, with the Hang Seng Index falling 1.25% to 26,548.44. Technology and consumer stocks led the decline as selling pressure returned to China-linked assets. The pullback highlighted lingering sensitivity to shifts in global sentiment and concerns around near-term earnings visibility.

Australia saw sharper losses, with the S&P/ASX 200 dropping 2.03% to 8,708.80. Resource and banking stocks were hit hard as the Australian Dollar Index fell 0.89%, signaling reduced appetite for commodity-linked assets. The combination of equity and currency weakness underscored Australia’s vulnerability to global demand concerns and risk-off positioning.

South Korea Extends Pullback After Strong Rally

South Korea’s KOSPI Composite Index declined 1.44% to 5,089.14, extending its recent correction after a powerful rebound earlier in the week. Technology and semiconductor stocks faced renewed selling as investors continued to trim exposure following outsized gains. The move appeared corrective rather than structural but reflected ongoing caution toward high-beta markets.

Outlook: Markets Seek Stability After a Volatile Week

Looking ahead, Asian markets may continue to trade unevenly as investors assess whether recent pullbacks have run their course. Attention will remain on global economic data, currency movements, and corporate earnings guidance for direction. While selective opportunities may emerge in markets showing resilience, such as Japan and India, broader sentiment remains cautious. With volatility still elevated, investors are likely to favor disciplined positioning and wait for clearer confirmation before committing to a sustained risk-on stance in the region.