Asian equity markets closed Friday, January 9, 2026, with a broadly positive tone as investors returned to risk assets following the pullback seen earlier in the week. Strong rebounds in Japan, China, and South Korea helped lift regional sentiment, signaling that the recent weakness was more a pause than a reversal of the early-2026 uptrend. While gains were not uniform across the region, the session reflected renewed confidence in markets with strong export exposure and policy visibility.

The recovery came as investors reassessed valuations after profit-taking in recent sessions. With earnings season approaching and macro conditions largely unchanged, traders selectively added exposure to markets that had shown resilience during the initial January rally.

Japan Leads Regional Rebound as Exporters Recover

Japan’s Nikkei 225 surged 1.61% to 51,939.89, marking a decisive rebound after two sessions of declines. Exporters, industrials, and technology stocks led the advance as investors stepped back into names that had come under pressure earlier in the week. The Japanese Yen Index edged lower by 0.07%, offering mild currency support to overseas earnings and reinforcing buying interest in export-oriented sectors.

The rebound suggested that investor confidence in Japan’s earnings outlook remains intact, particularly as global demand expectations stabilize. Market participants viewed the recent pullback as an opportunity to re-enter positions rather than a signal of deteriorating fundamentals.

China and South Korea Extend Early-Year Strength

China’s SSE Composite Index rose 0.92% to 4,120.43, continuing its steady advance and reinforcing the view that mainland equities are entering a more stable phase. Financials, infrastructure-linked stocks, and selected consumer names supported the move as confidence in policy support remained firm. The gain helped offset recent concerns around uneven economic momentum and added to broader regional optimism.

South Korea’s KOSPI Composite Index climbed 0.75% to 4,586.32, extending its strong start to the year. Semiconductor and electronics stocks were again among the top performers, reflecting expectations of improving global technology demand. Korea’s continued outperformance underscored investor confidence in its earnings trajectory and export exposure as 2026 unfolds.

Hong Kong’s Hang Seng Index added 0.22%, posting a modest recovery. While gains were more restrained compared with mainland China and Korea, the positive close suggested stabilizing sentiment toward China-linked assets following recent volatility.

Australia Flat as Currency Weakness Offsets Equity Support; India Slips Further

Australia’s S&P/ASX 200 closed marginally lower, down 0.03%, as gains in mining and energy stocks were offset by weakness in financials. The Australian Dollar Index fell 0.35%, reflecting softer currency demand, which helped exporters but weighed on broader investor confidence. The flat finish highlighted a wait-and-see approach as traders balanced global optimism with local currency dynamics.

India’s S&P BSE Sensex fell 0.78% to 83,525.02, extending recent losses and underperforming regional peers. Financials and IT stocks led the decline as investors continued to pare exposure following earlier strength. Despite the pullback, the broader outlook for India remains constructive, though near-term sentiment has turned more cautious amid valuation concerns.

Outlook: Focus Shifts to Earnings Momentum and Market Selectivity

Looking ahead, Asian markets are expected to remain selective as investors balance optimism around global growth with discipline on valuations. Upcoming corporate earnings and guidance will be closely watched for confirmation that early-year enthusiasm is supported by fundamentals, particularly in technology and export-driven sectors. Currency movements, especially in the yen and regional commodity-linked currencies, will continue to influence flows. While volatility may persist in pockets, the rebound in North Asia suggests that the broader uptrend remains intact as markets move deeper into the first quarter of 2026.