Asian markets closed Tuesday, February 10, 2026, with a constructive tone as the region extended Monday’s powerful rebound. Investor confidence remained firm, though the pace of gains slowed compared with the prior session, suggesting a shift from aggressive dip-buying to more selective accumulation. Strength in Japan once again anchored regional sentiment, while China, Hong Kong, and India posted steady advances.

The session reflected a market that is regaining balance after recent volatility. With currencies firm and equity momentum intact, investors continued to favor risk assets, albeit with greater discipline following last week’s sharp swings.

Japan Outperforms Again as Nikkei Pushes Higher

Japan led regional gains for a second consecutive session, with the Nikkei 225 rising 2.28% to 57,650.54. Exporters, industrials, and technology stocks continued to attract strong inflows as investors built on Monday’s rally. The advance reinforced the view that Japan remains a key beneficiary of improving global sentiment and resilient corporate earnings expectations.

The Japanese Yen Index climbed 0.77%, signaling currency strength alongside equity gains. While a firmer yen can sometimes pressure exporters, the synchronized move suggested broader confidence in Japan’s macro backdrop rather than FX-driven stress. Market participants appeared comfortable maintaining exposure as long as volatility remains contained.

China and Hong Kong Advance Modestly as Stability Improves

Mainland China’s SSE Composite Index edged higher by 0.13% to 4,128.37, extending its gradual recovery. Financials and infrastructure-linked stocks provided modest support, while consumer sectors remained mixed. The measured gain highlighted a cautious but improving stance among domestic investors, anchored by expectations of policy stability.

Hong Kong’s Hang Seng Index added 0.58% to 27,183.15, following Monday’s strong performance. Financial and technology stocks contributed to the advance, though gains were less pronounced as investors consolidated recent profits. The positive close suggested easing selling pressure and improving sentiment toward China-linked assets after recent turbulence.

Australia and India Post Mixed Results as Currencies Stay Firm

Australia’s S&P/ASX 200 closed marginally lower, slipping 0.03% to 8,867.40. The mild decline reflected consolidation after Monday’s sharp rebound rather than a deterioration in sentiment. Resource and financial stocks were mixed, with investors opting for caution despite supportive external conditions.

India’s S&P BSE Sensex rose 0.26% to 84,283.21, extending its recovery at a measured pace. Domestic-focused sectors and financials supported the index, while exporters lagged slightly. The steady advance reinforced India’s relative resilience amid broader regional volatility.

The Australian Dollar Index surged 1.12%, signaling continued demand for risk-linked currencies and confidence in global growth trends. Currency strength across the region helped reinforce the risk-on narrative, even as equity gains moderated.

South Korea Consolidates After Strong Surge

South Korea’s KOSPI Composite Index edged up 0.07% to 5,301.69, effectively consolidating after Monday’s outsized gain. Technology and semiconductor stocks were mixed as investors paused to reassess positioning following the sharp rebound. The flat close suggested stabilization rather than renewed selling pressure.

The restrained move highlighted a market transitioning into a digestion phase, where participants weigh recent gains against near-term catalysts and valuation considerations.

Outlook: Momentum Holds as Markets Shift to a More Selective Phase

Looking ahead, Asian markets appear to be entering a more measured phase after two sessions of strong recovery. Investors will continue to monitor global economic data, earnings guidance, and central bank signals for confirmation that risk appetite can be sustained. Currency movements, particularly in the yen and Australian dollar, remain key indicators of confidence and capital flows.

While volatility has eased, it has not disappeared, suggesting that markets may favor gradual gains rather than sharp rallies in the near term. If global conditions remain supportive, Asia’s recent rebound could evolve into a steadier upward trend, with investors increasingly selective about where they deploy capital as February trading progresses.