^{Photo: The Trading Room}

Asian Markets Open the Year Unevenly

Asia-Pacific markets began 2026 with a mixed tone, shaped by thin holiday trading and cautious global sentiment. Several major markets, including Japan and mainland China, remained closed for New Year holidays, reducing regional liquidity and amplifying individual market moves.

Against this backdrop, South Korea stood out as one of the most active and decisive markets in the region.

Kospi Hits a Fresh All-Time High

South Korea’s Kospi index climbed 0.65%, setting a new record high as investors returned from the holiday break with renewed optimism. The rally was led by heavyweight technology stocks, reflecting continued confidence in global semiconductor demand.

Samsung Electronics jumped nearly 3%, after reports indicated strong customer feedback on its high-bandwidth memory (HBM) chips, a key component in artificial intelligence and advanced computing systems. HBM has become one of the most critical battlegrounds in the AI supply chain, and investor enthusiasm reflects expectations of sustained global demand in 2026.

The technology-heavy Kosdaq rose 1.47%, outperforming the benchmark index as investors rotated into growth-oriented small and mid-cap stocks.

South Korean markets also opened one hour later than usual at 10 a.m. local time, reflecting adjusted holiday trading hours.

Australia Steady, Hong Kong Gains Momentum

Elsewhere in the region, Australia’s S&P/ASX 200 edged up 0.13%, trading largely flat as investors awaited clearer global signals.

Hong Kong markets posted stronger gains, with the Hang Seng Index rising 1.48%. Educational services stocks led advances, while fresh listings added to market excitement.

AI chip designer Shanghai Biren surged more than 100% on its debut, following a 5.58 billion Hong Kong dollar ($717 million) IPO. The listing drew exceptional demand, with the public offer over 2,300 times subscribed, even after the upsize option was exercised. The international tranche was nearly 26 times subscribed, underscoring continued appetite for AI-related equities despite recent global market volatility.

Singapore Data Adds to Regional Context

Adding to the regional picture, Singapore reported 5.7% year-on-year GDP growth in the fourth quarter, accelerating from a revised 4.3% in the previous quarter. The expansion was driven primarily by manufacturing, reinforcing optimism around Asia’s industrial and export-linked sectors.

Prime Minister Lawrence Wong confirmed in his New Year address that Singapore’s economy grew 4.8% for full-year 2025, beating earlier government forecasts.

U.S. Markets Provide a Mixed Backdrop

U.S. equity futures pointed modestly higher during early Asian trading. S&P 500 futures rose 0.15%, Nasdaq-100 futures gained 0.12%, and Dow futures advanced 0.16%, suggesting a tentative stabilization after year-end selling.

On New Year’s Eve, U.S. markets pulled back, with the S&P 500 falling 0.74%, the Nasdaq Composite down 0.76%, and the Dow Jones Industrial Average slipping 0.63%.

Despite the late-year dip, U.S. markets closed 2025 with strong gains. The S&P 500 rose 16.39%, the Nasdaq surged 20.36%, fueled by artificial intelligence optimism, and the Dow advanced 12.97%, lagging slightly due to its lower exposure to high-growth technology stocks.

Outlook for Asian Equities

The strong start for South Korean equities highlights continued investor conviction in AI, semiconductors, and export-driven growth, even as broader regional markets remain cautious. With key Asian exchanges set to reopen in the coming days, investors are watching closely to see whether Seoul’s momentum can extend across the region or if global volatility will reassert itself in early 2026.