Asian Markets Begin 2026 on Positive Note Amid Thin Volumes
Asian markets commenced the new year on a strong footing, despite thin trading volumes due to the closure of Tokyo and Shanghai exchanges. Investors are eagerly awaiting fresh cues from Wall Street after a remarkable 2025, which saw the S&P 500 surge 16.4%, the Nasdaq climb 20.4%, and London’s FTSE enjoy its best performance in 16 years.
In Asia, Seoul’s stocks skyrocketed 75% in 2025, while Hong Kong’s Hang Seng index and Tokyo’s Nikkei 225 rose 28% and 26%, respectively. According to Kyle Rodda, an analyst at Australian brokerage Capital.com, the consensus is that this upward trend will continue, driven by expectations of accelerated US economic growth, moderating inflation, and potential interest rate cuts.
On Friday, Hong Kong’s market was up 2.2%, with chip designer Biren Technologies making a stellar debut, rising 80% after its initial public offering. The company’s listing raised over $700 million, underscoring the insatiable investor appetite for artificial intelligence-related stocks. Baidu, a search-engine giant, also gained nearly 7% after announcing that its AI chip unit had filed for a listing in Hong Kong.
Other Asian markets, including Taipei, Sydney, Jakarta, Manila, and Singapore, also made gains. Seoul’s Kospi, which soared 76% in 2025 due in part to the AI boom, rose 1.7%. Samsung Electronics added 3% after its co-CEO praised the company’s high-bandwidth memory chips.
Precious metals started the year on a positive note, with gold and silver rising 0.64% and 1.5%, respectively. The euro and pound sterling also gained against the US dollar, while Brent crude and West Texas Intermediate oil prices edged up.
Key market figures at 0430 GMT included the Hang Seng Index up 2.2% at 26,189.79, the euro/dollar up at $1.1757, and the pound/dollar up at $1.3480. The dollar/yen rose to 156.84, while the euro/pound gained to 87.22 pence. Brent North Sea Crude was up 0.5% at $61.17 per barrel, and West Texas Intermediate rose 0.6% to $57.74 per barrel.
As the new year unfolds, investors will be closely watching the US economy, interest rates, and corporate fundamentals to determine whether the current bullish trend will persist. With many Asian markets still closed for the holiday, attention will shift to Wall Street’s performance in the coming days.