Asian equity markets began the trading week on a positive note on Monday, with investors responding favourably to signs of diplomatic progress in the Middle East and renewed strength in the technology sector. Gains across several of the region’s largest exchanges reflected improving risk appetite, although trading remained cautious as investors continued to monitor global inflation, interest-rate expectations and geopolitical developments.
Japan leads regional gains
Japan’s stock market delivered one of the strongest performances during the opening session. The Nikkei surged as investors returned to technology and semiconductor shares, extending the market’s recent momentum. Continued demand for artificial intelligence-related companies and exporters supported buying activity, while a slightly weaker yen also improved earnings prospects for many internationally focused Japanese firms.
South Korea benefits from chip demand
South Korea also opened firmly higher, with semiconductor manufacturers once again leading the advance. Investors continued to favour major chip producers amid expectations of sustained global demand for AI infrastructure and high-performance computing. Technology shares remained the principal driver of the Korean market’s strength during early trading.
China and Hong Kong trade mixed
Mainland Chinese markets opened with only modest movement as investors balanced improving global sentiment against ongoing domestic economic concerns. In Hong Kong, the Hang Seng Index underperformed regional peers, reflecting profit-taking in several large technology and property stocks despite the broader improvement in global market sentiment.
India extends positive momentum
Indian equities also opened in positive territory, with the Sensex rising more than 400 points while the Nifty climbed above the 24,100 level. Information technology companies led the gains as investors returned to growth sectors following last week’s brief pullback. The resilience of domestic equities continued to support confidence in one of Asia’s strongest-performing major markets this year.
Investors watch oil prices and central banks
The improvement in sentiment followed reports of diplomatic progress surrounding tensions in the Middle East, easing immediate concerns over energy supply disruptions. Oil prices retreated from recent highs, providing additional support for equity markets across Asia. Nevertheless, investors remain focused on upcoming U.S. inflation data and future interest-rate decisions by the Federal Reserve, both of which are expected to influence global capital flows during the week ahead.
Overall, Asian markets entered the new trading week with cautious optimism. While geopolitical risks and monetary policy remain key uncertainties, today’s opening suggested that investors are willing to add risk exposure as long as international tensions continue to ease and corporate earnings expectations remain supportive.
Newshub Editorial in Asia – 22 June 2026
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