Asian equities have carried their rally into the first week of 2026, extending gains alongside the broader global uptrend. Japan’s Nikkei continues to draw institutional interest, rising in step with a weaker yen and favourable export conditions. In Hong Kong and South Korea, local benchmarks are moving steadily higher, supported by renewed inflows into technology and industrial names.
Investor confidence in the region appears to be building, helped by a stable dollar and relatively quiet bond markets. With the US Federal Reserve expected to begin cutting rates later this year, pressure on emerging market currencies has eased, and that shift is feeding directly into equity performance.
Wall Street’s role remains pivotal. US indices, including the Nasdaq and S&P 500, are holding near record highs, driven by demand for technology and AI-linked names. That same demand is filtering into Asia, where semiconductor firms and platform technology stocks are seeing renewed interest.
Fidelity China Special Situations PLC (LON:FCSS), the UK’s largest China Investment Trust, capitalises on Fidelity’s extensive, locally-based analyst team to find attractive opportunities in a market too big to ignore.
