Asian Stock Markets Record The Strongest Annual Start Ever As Shanghai Composite Hits Multi‑Year High And Sets Longest Winning Streak; Japan And Korea Rally

Asian equity markets opened 2026 with exceptional momentum, as several major indices registered record performances. The MSCI Asia‑Pacific Index advanced roughly 4% across the first four trading days of the year, marking the strongest start since records began in 1988. Japan’s TOPIX and Nikkei 225 rose 3.8% and 4.3% respectively over the first two sessions, the largest New‑Year two‑day gains since 1990.

On January 6, mainland Chinese shares extended gains in the afternoon session, with the Shanghai Composite reaching its highest level since late July 2015 and recording a thirteenth consecutive daily advance, the longest winning streak in the index’s history. The Nikkei 225 closed at 52,518.08 points, establishing a new closing high, while South Korea’s KOSPI strengthened 1.32% to 4,525.48 points, also closing at a record level.

Raymond Sagayam, Managing Partner at Banque Pictet & Cie SA, observed that emerging Asian markets are benefiting from attractive valuations and proximity to the artificial‑intelligence supply chain, which is supporting investor interest.

The Shanghai Composite’s 13‑day rally represents a new historical milestone. According to Wallstreetcn, the index rose 1.14% at today’s close, extending its consecutive‑gain run to thirteen sessions. The Shenzhen Component increased 1.11% and the ChiNext Index added 0.36%. Prior to this episode, the Shanghai Composite’s longest streak was twelve consecutive gains recorded from February 25 to March 11, 1992, and the index had previously achieved eleven consecutive gains on three occasions in 1992, 2006 and 2018.

Japan’s advance has been led by large‑cap names, drawing significant foreign inflows. Hideyuki Ishiguro, Chief Strategist at Nomura Asset Management, noted that Japanese equities continue to trade at lower price‑earnings ratios relative to U.S. stocks, prompting overseas investors to target high‑quality core names. This dynamic reflects a broader reallocation of global capital toward markets with relatively favorable valuations.

Domestic retail participation has also amplified the rally in Japan. Analysts point to increased contributions from individual investors topping up tax‑advantaged NISA accounts for the new year, with some retail traders accelerating purchases after prior session gains to avoid missing further upside, a behavior that has reinforced short‑term buying pressure.

Several supportive factors underpin the regional advance, including resilient U.S. market sentiment amid rate‑cut expectations, improving corporate earnings in Japan, strengthened corporate governance, and anticipated stimulus measures from Prime Minister Sanae Takaichi. Masayuki Doshida, Senior Market Analyst at Rakuten Securities, commented that current prices largely reflect expectations of earnings recovery and suggested that, should earnings exceed forecasts, the Nikkei 225 could reach 55,000 points or higher.

Nonetheless, market participants are advised to remain vigilant about downside risks. The sustainability of gains in the artificial‑intelligence sector and ongoing geopolitical uncertainties are cited as principal concerns. Doshida specifically highlighted the situation in Venezuela as a potential geopolitical risk that, if it escalates, could materially affect market sentiment. Investors should monitor these developments closely, as they may pose substantive challenges to the prevailing upward trend.