Where Asia Closed Yesterday

Monday’s session split Asia into two camps: China outperformed while the rest of the region bled.

The Hang Seng rallied 2.36% to 25,143 and the Shanghai Composite climbed 0.85% to 3,796, extending a run of mainland-led strength. The Shenzhen Component was the outlier on the China side, slipping 0.71% — a divergence that suggests large-cap state-backed names carried the bid while smaller growth stocks lagged.

Everywhere else, red dominated. The KOSPI fell 4.46% to 6,516, the heaviest drop in the region, with Samsung and SK Hynix likely dragging the index lower during the global chip rout that preceded Monday’s US rebound. Japan’s Nikkei 225 was last marked at 64,141 after a 4.03% drop on Friday — the market was closed Monday for a holiday, so today’s open will be Japan’s first reaction to the US bounce.

The TAIEX slipped 0.52% to 42,450, with TSMC-linked selling weighing on the broader tape. India’s Nifty 50 eased 0.39% to 24,239. The ASX 200 was essentially flat at 8,791 (-0.06%), and Singapore’s Straits Times Index drifted 0.19% lower. New Zealand’s NZX 50 ticked up 0.10% in early Wednesday trade.

US Overnight Snapshot

Wall Street delivered the kind of session Asia bulls were hoping for. The S&P 500 rose 0.89% and the Nasdaq Composite gained 1.29%, powered by a tech-led rebound. The Nasdaq 100 ETF (QQQ) jumped 1.85%.

Technology was the standout sector — XLK surged 2.89% as chip stocks snapped back hard. Headlines flagged Micron and other semiconductor names bouncing strongly, while Super Micro soared after its margins unexpectedly doubled. That chip recovery is directly relevant for KOSPI (Samsung, SK Hynix), TAIEX (TSMC), and HKEX-listed tech.

The VIX dropped 8.58% to 17, well below the anxiety threshold of 20. Energy (XLE +0.97%) joined the bid. The Russell 2000 gained 1.45%, signalling broad risk appetite rather than a narrow mega-cap rally. This is the cleanest risk-on signal Asia has had to work with in several sessions.

Commodity + FX Watch

Commodities ran hot across the board overnight. Copper jumped 3.63% — the biggest mover in the complex — which will put a direct bid under ASX miners like BHP and Rio Tinto, and supports China’s industrial metals names on the mainland.

Gold climbed 1.88% toward $4,090, extending its run as a parallel safe-haven bid even on a risk-on night. WTI crude rose 1.77% to $84.70, a tailwind for energy-heavy pockets of the ASX and SGX.

On FX, the Australian dollar firmed 0.31% against the greenback — a modest move but directionally supportive for the ASX. USD/JPY ticked higher to 163, adding 0.44%. A weaker yen at these levels continues to flatter Japanese exporter earnings on paper, but the Nikkei’s 4% drop last Friday shows the market is focused on other risks. The yen weakness may help cushion today’s Tokyo open.

What to Watch Today

• Japan’s catch-up trade: The Nikkei missed Monday’s session entirely. With US tech rebounding sharply and chip stocks leading the recovery, Tokyo’s open will compress two days of global price action into one reaction. Expect a volatile first 30 minutes — the 4.03% Friday drop left room for a meaningful relief bounce if futures confirm the bid.
• KOSPI semiconductor reaction: After Monday’s 4.46% plunge, Samsung and SK Hynix will price in the overnight US chip bounce. Headlines about Micron and broad semiconductor strength point to a gap higher, but watch whether Korean sellers use the bounce to lighten positions.
• China-HK divergence: The Hang Seng and Shanghai outperformed Monday while Shenzhen lagged. Today’s question is whether that large-cap mainland bid extends or rotates — copper’s 3.63% surge gives industrials and materials a fresh catalyst.
• ASX miners at the open: Copper’s overnight surge plus firmer iron ore pricing should lift the materials sector. BHP, Fortescue, and Rio Tinto will set the early tone for the ASX 200 after Monday’s flat session.

Bottom Line

The overnight US session delivered a clean risk-on signal — broad-based equity gains, a tech-led rebound, falling volatility, and surging commodity prices. For Asia, that setup favours a relief bounce across the exchanges that sold off hardest on Monday, particularly the KOSPI and the Nikkei (which hasn’t traded since Friday’s sharp drop). Luna3 sees the bias tilted toward buyers today, though the strength of the bounce will depend on whether regional flows confirm the US lead or treat it as a sell-the-rip opportunity after last week’s damage.

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