Asia-pacific equities open higher, following positive cues from Wall Street

Indices

Asian indices have demonstrated robust upward momentum as of January 27, 2026. The Nikkei 225 (N225) closed at 53.33K, reflecting a 0.85 driven by strength in financial and technology sectors. This movement has pushed the index to new record highs, underpinned by expectations of further fiscal stimulus from Tokyo. The Hang Seng Index (HSI) closed at 27.12K, up 1.31, with gains led by technology shares and optimism surrounding new consumption-boosting measures from China. The Shanghai Composite Index (SSEC) advanced to 3.97K, furthering a nine-session winning streak, reflecting persistent positive sentiment on the back of supportive policy actions and economic data. The prevailing trends suggest an overall buy signal in the short term, particularly for sectors benefiting from fiscal and economic stimulus.

Stocks

Several stocks captured significant market attention. In Japan, Mercari (4385) emerged as a top gainer, closing at 3.26K, up by 7.24, indicating strong investor interest in technology growth stories. Nitori Holdings Co Ltd (9843) also posted notable gains at 2.77K, up 4.87. On the downside, Fujitsu (6702) and Renesas Electronics Corp (6723) experienced sharp declines, down 7.83 and 6.31 respectively, suggesting sector rotation and profit-taking in select names.

In Hong Kong, China Life Insurance (2628) and AIA Group (1299) led the gainers, reflecting renewed interest in financial and insurance plays. Conversely, Hang Lung Properties (0101) and Hansoh Pharmaceutical Group (3692) lagged, pointing to sector-specific headwinds.

For Shanghai, Cybrid Technologies (603212) and Shanghai Sinotec (603121) surged by 10.01 each, highlighting strong momentum in select tech and industrial stocks, while Beijing Tricolor (603516) and Qingdao Copton Tech (603798) faced steep losses.

Trading strategies in this environment should focus on momentum plays within the technology and financial sectors, while maintaining caution around recent top gainers to manage risk from potential profit-taking.

Economic News

Recent economic news has had a substantial impact on Asian markets. In Japan, market optimism is being supported by speculation around additional fiscal stimulus measures from Tokyo, which has contributed to the Nikkei 225’s record highs. In China, the government’s easing of property purchase restrictions and a record $1.25 trillion in 2025, coupled with a surge in December imports, signal a recovery in domestic demand and have buoyed the Shanghai Composite Index. In Hong Kong, the continuation of tech sector gains and new government measures to support consumption have provided a lift to the Hang Seng Index.

Economic Events

Markets are closely monitoring upcoming U.S. rate decisions and geopolitical developments, as these factors have the potential to alter risk sentiment across the region. Additionally, investors are keeping an eye on further economic data releases from China, which are anticipated to have a direct influence on both the Shanghai Composite and Hong Kong indices. No specific major regional economic events are detailed for today or this week, but ongoing fiscal and policy initiatives remain key market drivers.

Market Sentiment

The overall sentiment across Asian markets is described as cautiously optimistic. Robust performance in technology and financial sectors, along with positive economic data and policy support, are encouraging risk-on positioning among investors. However, the persistence of global geopolitical uncertainties and the approach of significant economic data releases are prompting some degree of caution. This dynamic is likely to sustain current upward trends while leaving room for volatility in response to external shocks.

Please note that the analysis is for informational purposes only and does not constitute financial advice. Users should conduct their own research.