Asian markets opened Monday, February 16, with a mixed tone as investors navigated a holiday-thinned trading environment across much of the region. While select benchmarks showed resilience, broader risk appetite remained constrained by seasonal closures and cautious global sentiment. The morning session reflects a market balancing reopening dynamics with macro uncertainty.

Australia Outperforms as Japan Trades Lower

Australia’s S&P/ASX 200 edged higher by 0.16 percent to 8,931.90, positioning Sydney as one of the relative outperformers in the region during the early session. Gains were supported by selective strength in financials and resource-linked names, as investors assessed commodity price stability and domestic economic signals.

In contrast, Japan’s Nikkei 225 slipped 0.15 percent to 56,857.14. The modest decline comes alongside slight weakness in the Japanese Yen Index, which hovered at 65.47. A softer yen often supports exporters, yet the muted currency movement suggests global investors are refraining from aggressive positioning at the start of the week. With global bond yields fluctuating and U.S. monetary policy expectations still evolving, Japanese equities appear to be consolidating recent gains.

Currency markets further reflected caution, with the Australian Dollar Index down 0.17 percent to 70.75. The pullback indicates tempered risk appetite and ongoing sensitivity to external demand, particularly from China.

Mainland China and India Face Early Pressure

Mainland Chinese equities were under pressure in early trade. The SSE Composite Index declined 1.26 percent to 4,082.07, signaling investor hesitancy as markets reopen following holiday-related disruptions. It is important to note that several regional exchanges remain closed or are observing shortened sessions due to Chinese New Year and related celebrations.

China’s Shanghai Stock Exchange and Shenzhen Stock Exchange are observing Chinese New Year schedules, limiting full participation across mainland markets. The holiday effect is also being felt in Taiwan, where the Taiwan Stock Exchange observes Chinese New Year, further dampening regional turnover.

India’s S&P BSE SENSEX fell 1.25 percent to 82,626.76, marking one of the sharper declines across major Asian benchmarks this morning. The pullback suggests profit-taking after recent highs and reflects sensitivity to global capital flows. Foreign institutional investors remain key drivers of Indian equity direction, particularly amid shifting expectations around global growth and interest rates.

Korea and Hong Kong Weighed by Holiday Effects

South Korea’s KOSPI Composite Index slipped 0.28 percent to 5,507.01. Trading activity remains affected by the Korean New Year period, with the Seoul Stock Exchange and the KOSDAQ market observing adjusted schedules. Holiday-related liquidity constraints can exaggerate price movements, especially in technology and export-driven sectors that dominate Korean indices.

Hong Kong’s Hang Seng Index declined 0.29 percent to 26,491.03, reflecting broader caution across Greater China markets. Investors continue to monitor cross-border capital flows and policy signals from Beijing as markets gradually return from the festive period.

Elsewhere in the region, multiple exchanges are closed or partially inactive due to Lunar New Year celebrations. Indonesia’s Jakarta Stock Exchange is observing Lunar New Year, as are Vietnam’s Ho Chi Minh City Stock Exchange and Hanoi Stock Exchange. These closures significantly reduce overall Asia-Pacific liquidity, concentrating trading flows into open markets and increasing the potential for sharper intraday swings.

Outlook: Liquidity, Policy Signals, and Global Yields in Focus

As the week progresses, investors will closely monitor the full reopening of regional exchanges following the Lunar and regional New Year holidays. The return of normal trading volumes across China, South Korea, Taiwan, Indonesia, and Vietnam will provide clearer direction for Asian equities.

Key variables to watch include currency stability, particularly in the yen and Australian dollar, as well as capital flows into emerging Asia. Global bond yield movements and U.S. macroeconomic data could also shape risk sentiment. In the near term, thinner liquidity may continue to drive volatility, but once participation normalizes, institutional investors will likely reassess positioning across Asian equities with a sharper focus on earnings outlooks, policy support, and cross-border demand dynamics.