Asian equity markets opened Friday on a positive note, extending this week’s strong momentum as investors reacted favourably to easing geopolitical tensions in the Middle East, falling oil prices and continued optimism surrounding the global economic outlook. Japan and South Korea led regional gains, while several major Chinese markets remained closed for the Dragon Boat Festival holiday.
Japan reaches another record high
Japan’s benchmark Nikkei 225 climbed to another all-time high in early trading, marking its fifth consecutive record session. Investors welcomed lower energy prices following the reopening of shipping through the Strait of Hormuz, reducing inflation concerns for one of the world’s largest energy-importing economies.
Export-oriented companies also benefited from continued weakness in the Japanese yen, which traded near its lowest level in two years against the US dollar. While the weaker currency supports Japanese exporters, it has also fuelled speculation that authorities may intervene to stabilise the exchange rate if depreciation continues.
South Korea extends impressive gains
South Korea’s KOSPI was among the strongest performers in the region, rising more than 3% during the morning session. The index has enjoyed a remarkable week, supported by renewed investor appetite for technology and semiconductor companies, sectors that remain central to the country’s economy.
The rally reflects improving global risk sentiment and expectations that easing energy costs will support corporate earnings while reducing inflationary pressures.
Chinese markets pause for holiday
Trading activity across Greater China was quieter than usual, with mainland Chinese exchanges in Shanghai and Shenzhen, as well as Hong Kong, closed in observance of the Dragon Boat Festival. Taiwan’s market was also closed for the holiday, limiting regional trading volumes.
Dollar strength remains in focus
Currency markets remained active as the US dollar continued to strengthen following the Federal Reserve’s latest policy meeting. Investors interpreted the Fed’s comments as signalling that interest rates could remain elevated for longer than previously expected.
The stronger dollar weighed on precious metals but provided additional support for Japanese exporters by keeping the yen weak. Bond markets also reflected shifting expectations, with investors balancing lower oil prices against the prospect of tighter monetary policy in the United States.
Investors watch global developments
Although sentiment improved significantly at the opening bell, analysts remain cautious about the sustainability of the rally. The temporary agreement allowing oil shipments through the Strait of Hormuz has eased immediate concerns, but uncertainty surrounding longer-term geopolitical developments continues to influence market expectations.
For now, however, investors appear focused on declining energy prices, resilient corporate earnings and improving confidence that inflationary pressures may continue to moderate. With European markets preparing to open later today, traders will be watching whether Asia’s positive momentum carries into the global trading session.
Newshub Editorial in Asia – 19 June 2026
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