Asian markets began 2026 on a strong footing despite thin trading volumes caused by the closure of the Tokyo and Shanghai exchanges. Investors are eagerly awaiting fresh cues from Wall Street after a remarkable 2025, during which the S&P 500 surged 16.4%, the Nasdaq climbed 20.4%, and London’s FTSE posted its best performance in 16 years. In Asia, Seoul’s stocks jumped 75%, while Hong Kong’s Hang Seng index and Tokyo’s Nikkei 225 rose 28% and 26%, respectively.
Kyle Rodda, an analyst at Australian brokerage Capital.com, said the consensus is that the upward trend will continue, driven by expectations of accelerated U.S. economic growth, moderating inflation, and potential interest‑rate cuts. On Friday, Hong Kong’s market was up 2.2% after chip designer Biren Technologies made a stellar debut, soaring 80% following its IPO, which raised more than $700 million and underscored strong investor appetite for AI‑related stocks. Baidu also gained nearly 7% after announcing that its AI‑chip unit had filed for a Hong Kong listing.
Other Asian markets—including Taipei, Sydney, Jakarta, Manila, and Singapore—also posted gains. Seoul’s Kospi, which rose 76% in 2025 partly due to the AI boom, increased 1.7% as Samsung Electronics added 3% after its co‑CEO praised the company’s high‑bandwidth memory chips. Precious metals started the year positively, with gold up 0.64% and silver up 1.5%. The euro and pound sterling both appreciated against the U.S. dollar, while Brent crude and West Texas Intermediate edged higher.
Key market figures at 04:30 GMT showed the Hang Seng Index up 2.2% at 26,189.79, the euro/dollar at $1.1757, and the pound/dollar at $1.3480. The dollar/yen rose to 156.84, and the euro/pound climbed 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 closely watch the U.S. economy, interest rates, and corporate fundamentals to gauge whether the bullish trend can be sustained. With many Asian markets still closed for the holiday, attention will shift to Wall Street’s performance in the coming days.
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