In the first half of 2026, major Asian equity indices showed divergent performance. The Hang Seng Index rose 18.2% cumulatively, outperforming among major global indices, primarily driven by the recovery in tech stocks and the listing wave of new economy companies in Hong Kong. The CSI 300 rose 9.5%, presenting a fluctuating upward pattern. The Nikkei 225 edged up 3.1%, affected by JPY fluctuations and global macro uncertainties. The KOSPI performed steadily, while India’s SENSEX recorded a 14% gain driven by capital inflows and corporate earnings.
Hong Kong: Tech leads, new economy continues to attract capital
The Hong Kong market benefited from multiple positive factors in H1 2026: the Hang Seng Tech Index rose 32% cumulatively, with several leading internet companies reporting better-than-expected results. Hong Kong IPO fundraising exceeded HKD 200 billion, with new energy, biopharma, and AI sectors attracting substantial capital. Southbound capital continued net inflows, with average daily turnover up 35% YoY.
Japan: Yen volatility affects market sentiment
The Nikkei 225 showed a fluctuating pattern in H1, mainly affected by JPY exchange rate volatility. The Bank of Japan’s monetary policy normalization progress was below market expectations, with the Japan-US interest rate differential remaining large, and capital outflow pressure not fundamentally alleviated. Export and financial stocks performed relatively well, while domestic demand stocks came under pressure.
A-shares: Policy-driven structural opportunities
The A-share market showed structural trends under continuous policy support. New productive forces sectors (AI, semiconductors, new energy, high-end manufacturing) took turns to perform, with the CSI 300 and CSI 1000 diverging. Market sentiment recovered somewhat in April-May, but saw some pullback in June due to external uncertainties.
Looking ahead to H2, Asian equity markets will continue to face multiple tests from global monetary policy, geopolitics, and earnings growth. Investors are advised to focus on leading companies with reasonable valuations and high earnings certainty, and to maintain diversified allocation.