Japanese and South Korean indices trade higher as positive sentiment carries over from US equity gains.

Asian equity markets opened in positive territory on Thursday, 13 September 2026, as investor sentiment improved following a strong performance in US stocks during Wednesday's trading session. The regional gains reflected a broader shift toward risk appetite in global markets, with Japan's Nikkei 225 and South Korea's KOSPI indices both responding to the overnight rally on Wall Street.
Asian Market Performance in Early Trading
Japan's Nikkei 225 index opened largely unchanged, showing minimal movement in early trading hours despite the positive bias across the region. The relative stability in Tokyo comes as investors weigh domestic economic indicators against global risk sentiment. In contrast, South Korea's KOSPI index demonstrated more pronounced upward momentum, trading higher as technology and manufacturing sectors responded to improved global demand signals. The divergence between the two major Northeast Asian markets highlights the varied sectoral exposures and domestic factors influencing regional bourses. Trading volumes remained moderate across both exchanges, suggesting cautious optimism rather than aggressive positioning ahead of key economic data releases scheduled for later in September 2026.
US Market Catalyst and Global Spillover
Wednesday's strong buying in US equities provided the primary catalyst for Thursday's Asian market gains. Major US indices posted solid advances as investors responded to corporate earnings updates and economic data that suggested continued resilience in the world's largest economy. The positive close on Wall Street set a constructive tone for Asian trading sessions, with index futures pointing to higher opens across the region before markets commenced trading. This pattern of US-to-Asia sentiment transmission remains a dominant feature of global equity market dynamics, particularly during periods of heightened uncertainty about growth trajectories and monetary policy paths. The overnight performance in New York continues to serve as a critical reference point for Asian portfolio managers making opening positioning decisions.
India's Market Setup and Regional Context
India's benchmark equity indices, the BSE Sensex and NSE Nifty 50, were positioned to open higher on Thursday following the positive lead from both US and early Asian trading. Indian markets have demonstrated increasing correlation with global equity movements in 2026, particularly as foreign institutional investors maintain significant positions in the country's equity markets. The opening direction for Indian indices carries particular significance as domestic investors assess the interplay between global risk sentiment and India-specific growth drivers including monsoon progress, corporate earnings, and policy developments. India's equity markets have emerged as among the most closely watched in Asia, with the country's economic growth trajectory and demographic advantages attracting sustained international investor interest. The spillover from Wednesday's US gains and Thursday's regional Asian performance provides a technical tailwind for Indian equities, though domestic fundamentals remain the primary determinant of medium-term market direction.
The synchronised movement across global equity markets on Thursday underscores the persistent integration of international financial markets, where overnight performance in one major region increasingly dictates opening sentiment in the next. This correlation, while offering opportunities for globally diversified portfolios during risk-on phases, also transmits volatility and downside risk with equal efficiency. For emerging market equities including those in India and South Korea, the dependency on US market direction can occasionally overshadow strong domestic fundamentals, creating both challenges and opportunities for active portfolio managers.
The mildly positive bias evident in Thursday's Asian trading also reflects a market environment characterised by cautious optimism rather than euphoria. With major central banks navigating complex inflation and growth dynamics in September 2026, equity investors appear reluctant to commit aggressively to either bullish or bearish positions. This measured approach suggests markets are pricing in continued uncertainty about the global economic outlook, even as near-term technical factors support modest gains. The ability of Asian markets to sustain gains through the full trading session, independent of further US market cues, will serve as an important indicator of regional conviction.
Investors should monitor whether Thursday's positive opening in Asian markets translates into sustained gains through the close, or whether profit-taking emerges as the session progresses. The performance of technology-heavy indices including the KOSPI and India's Nifty will be particularly instructive, given this sector's sensitivity to global growth expectations and its significant weighting in regional benchmarks. Upcoming US economic data releases and Federal Reserve communications scheduled for later in September 2026 will likely determine whether the current mildly positive bias can strengthen into a more durable risk-on phase for global equities.
This article is an editorial rewrite based on reporting originally published by Livemint. The original article has been rewritten and contextualised for a global business audience by The Wise Global Desk using AI-assisted editorial tools.
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