Asian equity markets ended Friday’s trading session broadly lower as heightened geopolitical risk and renewed risk-off momentum weighed on market sentiment across key regional exchanges. Major bourses including in Tokyo, Shanghai and Hong Kong recorded declines, while Seoul outperformed with a notable advance in contrast to the broader regional sell-off.
Japan’s Nikkei 225, representing one of Asia’s core equity benchmarks, closed the session down as investor risk appetite waned amid externally driven uncertainty. Chinese mainland indices in Shanghai and Shenzhen experienced similar pressure, with both markets finishing the day lower by over a full percentage point as trading activity reflected cautious positioning by domestic and foreign investors alike. Hong Kong’s benchmark also recorded a modest decline on the day, with tech and property sectors among the notable laggards.
In South Korea, the Kospi defied regional trends, rising strongly to close positively on the session — an exception in otherwise weak Asian market performance. The advance in Seoul was led by gains in technology and consumer stocks, which helped the index outperform peers and reinforce its position as one of the more resilient regional markets this year.
Across Southeast Asia, markets saw a mixed finish. While some indices retraced earlier gains, others managed to hold ground, highlighting divergent investor sentiment across domestic macro fundamentals and capital flows.
Regional currency and bond markets mirrored the cautious equity trend. The Japanese yen appreciated against a softer dollar, while Asian sovereign bonds attracted safe-haven interest as equities came under pressure.
Commodities also influenced sentiment, with gold trading at elevated levels as investors sought refuge from equity downside. Energy prices retraced earlier gains, contributing to mixed sector performance across regional exchanges.
Looking ahead, Asian markets will continue to monitor developments in global trade flows and geopolitical developments that have recently amplified risk aversion. With monetary policy cues from major central banks in focus for the coming week, investor positioning may remain sensitive to macroeconomic releases.
Friday’s close in Asia therefore highlighted widespread caution and selective strength, even as certain markets such as Seoul demonstrated upside potential in an otherwise challenging session.
Newshub Editorial in Asia – 21 February 2026
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