Major Asian stock markets opened broadly higher on Thursday, with South Korea leading a regional rebound after measures from the US Treasury helped pull long-term bond yields lower. Japan, Hong Kong, mainland China and India all advanced, although oil prices and geopolitical tensions continued to limit risk appetite.
South Korea leads the recovery
South Korea’s Kospi delivered the strongest opening performance, rising more than 5% during early trading as semiconductor and technology shares recovered from Wednesday’s sharp sell-off.
The rebound followed a 5.8% fall in the previous session, when concerns over global borrowing costs and another retreat in technology shares triggered heavy selling. Samsung Electronics and SK Hynix were among the companies benefiting as investors returned to the semiconductor sector.
Despite Thursday’s recovery, South Korean equities remain highly volatile after a rapid AI-driven rally earlier in the year was followed by a substantial correction.
Tokyo rebounds after steep losses
Japan’s Nikkei 225 opened higher and gained around 1% in early trading, recovering part of Wednesday’s 3.2% decline. The broader Topix also advanced by approximately 1%.
Shimano, Daiichi Sankyo and Shiseido were among the stronger performers in Tokyo. The dollar traded near ¥158.3, slightly weaker than at the previous Japanese close.
Japanese shares received support from lower US Treasury yields, although concerns remain over domestic bond yields, government borrowing and the effect of higher global energy prices on Japan’s import-dependent economy.
Hong Kong and China move higher
Hong Kong’s Hang Seng Index rose by around 1% after the opening bell, supported by technology and financial shares. The index moved above 25,700 during the morning session.
Mainland Chinese markets recorded more moderate gains. The Shanghai Composite advanced approximately 0.3%, recovering part of its 2.4% decline on Wednesday.
The People’s Bank of China left its benchmark lending rates unchanged. The one-year loan prime rate remained at 3%, while the five-year rate was held at 3.5%. The decision was widely expected but reinforced expectations that Beijing may rely on targeted support rather than an immediate broad reduction in borrowing costs.
India ends a seven-day losing run
Indian markets also opened strongly. The BSE Sensex gained approximately 510 points, or 0.66%, to trade near 77,419 shortly after the opening bell. The Nifty 50 rose about 116 points, or 0.48%, to 24,194.
The advance put the Nifty on course to end a seven-session losing streak. Infosys, Bajaj Finance, HDFC Bank and Hindustan Unilever were among the early gainers.
US Treasury action lifts sentiment
The regional recovery followed an announcement that the US Treasury would expand purchases of long-dated government debt. The move improved liquidity and pushed bond yields lower after borrowing costs had reached multi-decade highs.
Lower yields provided immediate support to technology and growth shares, which are particularly sensitive to changes in financing costs.
However, Brent crude remained close to $92 per barrel amid continuing tensions involving Iran and the Strait of Hormuz. High oil prices, inflation concerns and uncertainty over global interest rates remain the principal risks facing Asian investors.
REFH – Newshub, Asia, 20 August 2026
Ask NF GPT
If you have an account with ChatGPT you get deeper explanations,
background and context related to what you are reading.
Recent Comments