Asian equities extended their rally on Tuesday morning, November 11, with broad-based gains across major regional markets. Optimism over corporate earnings, a softer yen, and expectations for steady global monetary policy fueled risk appetite. Investors are positioning themselves ahead of key inflation data in the U.S. and further economic indicators from China that could set the tone for global sentiment this week.

South Korea and Hong Kong Lead Regional Gains

South Korea’s KOSPI Composite Index surged 2.57% to 4,178.03, marking one of its strongest morning performances in weeks. The rally was powered by large-cap technology and semiconductor names, as traders bet on improved export demand and stabilization in memory chip prices. Investor confidence was also buoyed by reports suggesting stronger-than-expected third-quarter corporate earnings and a rebound in global tech orders.

In Hong Kong, the Hang Seng Index climbed 1.55% to 26,649.06, extending its recent recovery as mainland Chinese investors returned to the market through the Stock Connect program. Gains were led by property developers, internet giants, and consumer discretionary stocks. Sentiment was further boosted by expectations that Beijing could introduce additional fiscal support measures to reinforce economic growth in the coming months.

Japan and Australia Show Resilience Amid Currency Shifts

The Nikkei 225 rose 1.02% to 51,432.60, supported by a weaker yen and renewed buying in export-oriented shares such as automakers and precision equipment producers. The Japanese Yen Index fell 0.40% to 64.90, helping exporters benefit from improved profit margins in foreign markets. Analysts note that the yen’s depreciation may continue if the Bank of Japan maintains its ultra-loose policy stance while other central banks hold steady or begin to cut rates in 2025.

Australia’s S&P/ASX 200 edged up 0.21% to 8,854.30, reflecting cautious optimism. Gains were concentrated in mining and energy names as commodity prices steadied, though financial stocks remained subdued ahead of upcoming earnings announcements. The Australian Dollar Index advanced 0.68% to 65.33, reflecting stronger demand for risk assets and expectations of stable trade flows with China.

China and India Maintain Upward Momentum

On the mainland, the Shanghai SSE Composite Index gained 0.53% to 4,018.60, supported by continued interest in industrial and infrastructure-related sectors. Investors remain focused on signs of policy continuity following recent remarks from the People’s Bank of China indicating that liquidity conditions will remain accommodative. Market watchers believe the stability of China’s credit markets will be a crucial factor for sustaining the rally into the final quarter of the year.

In India, the S&P BSE Sensex added 0.38% to 83,535.35, maintaining its upward trend amid ongoing inflows from foreign institutional investors. The country’s robust corporate earnings and resilient domestic demand have positioned it as one of Asia’s more attractive markets heading into 2025. Tech, financial, and energy stocks led the morning’s gains, with analysts highlighting the strong fundamentals underpinning India’s growth trajectory.

Outlook: Watching Inflation, Policy, and Global Demand

As Asian markets continue their positive momentum, attention is shifting to macroeconomic developments that could influence risk sentiment in the days ahead. Investors are closely monitoring upcoming U.S. inflation figures, which will provide clues on the Federal Reserve’s next moves and their potential ripple effects across global asset classes. Meanwhile, China’s economic updates, including retail sales and industrial production data, will serve as a barometer of regional demand health.

Despite the upbeat tone, volatility may persist if geopolitical tensions or supply chain disruptions resurface. For now, regional markets appear poised to sustain moderate gains, supported by improving earnings, stable monetary conditions, and the gradual recovery of investor confidence across Asia.