Major Asian indices advanced as investors embraced expectations of a seasonal year-end rally, with key benchmarks posting gains across the region. Financial and technology sectors led the move, supported by improved market sentiment.
- ASX200 up 1.4% to 7,983.5; HSI gained 1.6% to 20,845
- NKY rose 1.3% to 37,622; SSE up 1.1% to 3,092.3
- KOSPI gained 1.8% to 3,241.2, led by semiconductors and banks
- Technology and financial sectors led gains with +2.1% and +1.9%
- Average P/E ratio across indices reached 15.3x
- $1.2 billion in new equity fund inflows into Asia
Asian stock markets rose sharply on Monday, driven by growing confidence in a final-quarter surge ahead of the year-end holiday period. Investor optimism was fueled by improving liquidity conditions and strong earnings momentum in several regional economies. The ASX200 climbed 1.4%, closing at 7,983.5, while the HSI gained 1.6% to settle at 20,845, marking its highest close since early November. Japan’s NKY advanced 1.3% to finish at 37,622, reflecting renewed demand for tech and industrial stocks. The Shanghai Composite (SSE) added 1.1% to 3,092.3, lifting consumer and financial shares amid signs of stabilizing domestic demand. South Korea’s KOSPI surged 1.8% to 3,241.2, propelled by gains in semiconductor exporters and banking firms. These moves reflect broader enthusiasm among institutional and retail investors betting on seasonal capital inflows and potential central bank support measures in the coming weeks. Key metrics highlight the breadth of the rally: 17 out of 22 sector groups across the region posted positive performance, led by technology (+2.1%) and financials (+1.9%). Market valuation indicators suggest moderate re-rating pressure, with the average P/E ratio across major indices now standing at 15.3x—up from 14.7x in late November. This uptick underscores shifting risk appetite and reduced caution toward cyclical assets. The rally has begun influencing global positioning strategies, with equity fund flows into Asia increasing by $1.2 billion over the past five trading days. Hedge funds have also trimmed short positions in regional equities by 12% in the same period. Analysts note that if momentum continues through December, it could set a bullish tone for the 2026 start, particularly for export-reliant economies.