Asian markets opened September with a mostly weaker session on September 1, 2026, as investors reduced exposure across several major benchmarks following the mixed finish to August. South Korea was one of the few major equity markets to advance, while Hong Kong recorded the sharpest decline. Currency markets, meanwhile, showed modest strength in both the Japanese yen and Australian dollar.

South Korea Posts a Modest Gain

South Korea’s KOSPI Composite Index rose 0.23% to 6,835.80, extending the benchmark’s recovery from its recent volatility.

The index remained above 6,800 but continued to trade below the psychologically important 7,000 level. The modest advance suggests that buying interest remained present as investors entered the new month, although the relatively small gain points to a cautious market environment.

Hong Kong Leads the Declines

Hong Kong’s Hang Seng Index fell 0.93% to 25,329.73, recording the largest decline among the major Asian equity markets tracked.

Despite the pullback, the index remained above 25,000, a level that has provided an important reference point during recent trading sessions.

The decline contrasts with the modest stability seen in South Korea and reflects a more cautious tone toward Hong Kong-listed equities at the beginning of September.

Japan, China and Australia Edge Lower

Japan’s Nikkei 225 declined 0.15% to 66,215.34, remaining above 66,000 despite the modest setback.

China’s SSE Composite Index slipped 0.16% to 3,979.89, moving slightly below the 3,986.30 level recorded on August 31. The benchmark remained close to the important 4,000 threshold.

Australia’s S&P/ASX 200 fell 0.10% to 9,066.70, maintaining its position above 9,000 despite the decline.

The relatively small moves in all three markets suggest that selling pressure remained contained compared with the sharper swings seen earlier in August.

India Also Moves Lower

India’s S&P BSE Sensex declined 0.31% to 76,721.48, extending the weakness seen in the previous session.

The index remained below 77,000 after finishing August at 76,866.61. Investors will continue to watch whether the benchmark can regain that level during the early September sessions.

Currency Markets Show Modest Strength

The Japanese Yen Index gained 0.20% to 62.59, while the Australian Dollar Index increased 0.06% to 71.65.

The gains were modest but represented a reversal from the weakness recorded in both currencies during the previous session.

Outlook

The key levels for the next sessions include 7,000 for South Korea’s KOSPI, 4,000 for China’s SSE Composite Index, 66,000 for Japan’s Nikkei 225, 9,000 for Australia’s S&P/ASX 200, and 25,000 for Hong Kong’s Hang Seng.

The ability of these benchmarks to maintain or reclaim those levels will provide important signals about the strength of investor sentiment as September begins.

Overall, Asian markets started September on a cautious note, with South Korea providing limited upside while most major equity benchmarks declined. Currency markets were somewhat firmer, but the relatively narrow trading ranges indicate that investors remain selective following the substantial volatility experienced across the region in August.