Hang Seng slips as Asian markets split; Nikkei, Kospi hit new highs

Asia began the week with a split-screen session, as Tokyo and Seoul extended their record run, while Australia and Hong Kong lagged behind.

The Nikkei 225 and South Korea’s Kospi opened at fresh highs, reflecting continued appetite for markets with strong earnings momentum and clear technology-led narratives.

Australia’s ASX 200 slipped in holiday-thinned trade and Hong Kong’s Hang Seng was marginally lower.

Mainland China managed a modest gain, giving the regional tape a firmer undertone than the headline split might suggest.

Asian markets: Nikkei 225 and Kospi keep the leadership

The first reading from the session was straightforward: investors are still willing to pay a premium for Japan and South Korea.

Early Asia trade saw both the Kospi and Nikkei rise to record highs, a sign that traders continue to back the region’s strongest earnings stories and AI-linked themes.

The market remains highly selective in that sense, as money is not flooding every Asian index; it is concentrating in the places where growth visibility and corporate momentum looks intact.

That leadership is important because it shapes the broader tone for regional risk appetite.

Japan’s market has been rewarded for governance reforms, better shareholder returns, and a still-supportive earnings backdrop.

South Korea continues to benefit from chip-related strength and its place in the global semiconductor cycle.

The result is a market that still prefers proven winners over broad beta.

China data gives mainland stocks a floor

Mainland China was the key supporting story behind the session.

China’s industrial profits rose 15.8% year on year in March, up from 15.2% in January-February, while first-quarter industrial profit growth accelerated to 15.5%, the fastest pace in half a year.

The improvement added to signs of an uneven recovery, with stronger pockets tied to AI and advanced manufacturing offset by continued weakness in consumer-facing sectors.

That nuance is important as the profit figures are not a sweeping confirmation that China is back in full-throttle expansion mode.

It is better read as evidence that corporate earnings momentum is still alive beneath a patchy demand backdrop.

For traders, that is enough to keep cyclical and industrial exposure in favor.

The fact that the CSI 300 held a small gain fits that interpretation: investors are willing to back mainland shares when the data improves, but they are not yet treating every positive release as a signal for a full-scale rerating.

Still a selective market

Elsewhere in the region, the softer tone in Australia and Hong Kong served as a reminder that Asia is not moving in lockstep.

Australia’s weaker open points to a more cautious read-through on commodities, rates, and risk appetite.

Hong Kong’s slight retreat suggests investors still want more proof that the mainland recovery is sustainable.

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