Asian equity markets closed Tuesday, January 6, 2026, with another robust session as momentum from the new year rally carried across much of the region. North Asian markets once again led the advance, reflecting strong investor confidence in technology, manufacturing, and export-oriented sectors. The continued strength highlights a decisive shift in sentiment compared with the cautious trading conditions seen at the end of 2025.

Improving global risk appetite, expectations of stable monetary policy, and early signs of earnings resilience helped sustain buying interest. While not all markets participated equally, the overall tone remained constructive, with breadth improving across major indices.

South Korea, China, and Hong Kong Extend Gains as Risk Appetite Builds

South Korea’s KOSPI Composite Index rose 1.52% to 4,525.48, extending its powerful start to the year. Technology and semiconductor stocks once again drove gains, supported by expectations of stabilizing global demand and improved earnings visibility in 2026. The continued rally reflects strong investor conviction that Korea’s export-driven economy is well positioned to benefit from a global growth rebound.

China’s SSE Composite Index advanced 1.50% to 4,083.67, pushing further above recent resistance levels. Financials, industrials, and infrastructure-related stocks led the move as confidence in policy support strengthened. Investors responded positively to signs that liquidity conditions remain supportive, reinforcing the view that China’s equity market may be entering a more stable phase after prolonged volatility.

Hong Kong’s Hang Seng Index gained 1.38% to 26,710.45, benefiting from the improved tone on the mainland and renewed interest in large-cap technology and financial stocks. The advance marked another constructive step in Hong Kong’s recovery, suggesting that investors are increasingly willing to re-engage with China-linked assets at the start of the year.

Japan Continues Breakout as Exporters Benefit from Firm Demand

Japan’s Nikkei 225 climbed 1.32% to 52,518.08, extending its breakout to new highs as exporters and industrials continued to attract inflows. Both the Japanese Yen Index and the Australian Dollar Index rose 0.32%, reflecting stable currency conditions that did little to disrupt equity momentum.

Despite the firmer yen, Japanese equities remained well supported, indicating that investors are focusing more on earnings strength and global demand trends than short-term currency fluctuations. Automakers, machinery firms, and technology stocks were among the session’s top performers, reinforcing Japan’s role as a key driver of Asia’s early-2026 rally.

India and Australia Lag as Profit-Taking Emerges

India’s S&P BSE Sensex fell 0.45% to 85,053.84, underperforming regional peers as investors locked in gains following recent strength. Financials and IT stocks faced selling pressure, though the pullback appeared technical rather than indicative of deteriorating fundamentals. India’s medium-term outlook remains constructive, supported by domestic consumption and infrastructure investment.

Australia’s S&P/ASX 200 declined 0.52% to 8,682.80, weighed down by losses in mining and banking stocks. Despite the stronger Australian Dollar Index, equity sentiment softened as investors reassessed commodity-linked exposure after recent advances. The move highlighted a degree of rotation within the region rather than a broad risk-off shift.

Outlook: Focus Shifts to Earnings Season and Sustainability of the Rally

Looking ahead, investors will closely watch the upcoming corporate earnings season for confirmation that early-year optimism is supported by fundamentals. Central bank communication and macroeconomic data—particularly from China and the United States—will also play a key role in determining whether the rally can sustain momentum. While volatility may increase as positioning becomes more crowded, the strong start to 2026 suggests that Asian markets are entering the year with renewed confidence, particularly in technology-driven and export-oriented economies.