Asian markets staged a broad recovery on September 4, 2026, reversing much of the weakness seen across several major benchmarks earlier in the week. Gains were led by Japan, Hong Kong and South Korea, while the stronger yen and Australian dollar indexes added to evidence of improved sentiment across regional financial markets.

Japan Leads the Regional Rebound

The Japanese Yen Index delivered the strongest performance, rising 1.81% to 64.16. The move represented a significant acceleration from its 0.94% gain on September 3 and pushed the index firmly above the 64 level.

The Nikkei 225 also recovered, advancing 1.26% to 65,020.94. The benchmark had declined 0.17% in the previous session, making Friday’s gain a clear reversal. The Nikkei’s return above 65,000 could become an important near-term level as investors assess whether the recovery can extend.

Hong Kong and South Korea Recover

The Hang Seng gained 1.74% to 25,650.87, its strongest advance in the supplied data for the week. The index had fallen 0.39% on September 3, making the latest move a decisive shift in short-term momentum.

South Korea’s KOSPI Composite Index climbed 1.64% to 6,687.21. The advance followed a modest 0.26% gain in the previous session and extended the benchmark’s recovery from its sharp 3.99% decline on September 2. The index is now approaching the 6,700 level, which could serve as an important technical threshold in the next session.

India and Australia Deliver Mixed Signals

The S&P BSE SENSEX rose 0.48% to 76,515.43, recovering strongly from its 2.79% decline on September 3. The rebound restored the benchmark above 76,000 and represented the largest one-day improvement for the index in the supplied September data.

Australia’s currency market also strengthened, with the Australian Dollar Index gaining 0.55% to 72.04. However, the S&P/ASX 200 moved in the opposite direction, slipping 0.16% to 9,005.90. The benchmark therefore remained just above 9,000 despite the broader improvement in regional sentiment.

China Remains Under Pressure

The SSE Composite Index was the weakest equity benchmark among the reported Asian markets, falling 0.30% to 3,930.12. The decline followed a near-flat 0.02% gain on September 3 and left the index further below the psychologically important 4,000 level.

The divergence between mainland China and the stronger performances in Hong Kong, Japan and South Korea suggests that the regional recovery was not uniform. Investors may continue watching whether China’s benchmark can regain momentum toward 4,000 in the coming sessions.

Outlook

The September 4 session leaves Asian markets on firmer footing heading into the next trading week. The Nikkei’s move above 65,000, the KOSPI’s approach toward 6,700 and the Hang Seng’s advance above 25,600 provide important near-term signals for regional momentum. At the same time, the SSE Composite remains below 4,000 and the ASX 200 is only marginally above 9,000, leaving those levels as key areas to watch as investors assess whether the broader rebound can develop into a sustained recovery.