Asia report: Kospi starts the year with new record highs

(Sharecast News) - Asia-Pacific markets traded mixed at the start of 2026 on Friday, with South Korea's Kospi hitting a new record high, while several regional markets remained closed for the holidays.

Trading conditions were shaped by a pullback on Wall Street on New Year's Eve, even as US equity futures pointed higher in early Asian hours.

American stock futures were modestly higher, with S&P 500 futures up 0.15%, Nasdaq 100 futures rising 0.12% and Dow Jones Industrial Average futures gaining 0.16%.

On Wednesday in the US, the S&P 500 fell 0.74%, the Nasdaq Composite dropped 0.76% and the Dow declined 0.63%.

Despite the late-year pullback, US markets ended 2025 strongly, with the S&P 500 up 16.39%, the Nasdaq Composite advancing 20.36% on artificial intelligence optimism and the Dow Jones Industrial Average rising 12.97%.

Seoul leads the gainers on mixed, quiet start to year

In Asia, Japan and mainland China were closed for the ShMgatsu and New Year holidays, respectively.

Hong Kong equities surged, with the Hang Seng Index jumping 2.76% to 26,338.47.

Baidu shares rallied 9.35% after the company announced plans to spin off and list its artificial intelligence chip subsidiary Kunlunxin in Hong Kong, subject to regulatory approvals.

The company said it owns about 59% of Kunlunxin and that the unit would remain a subsidiary, with the move aimed at highlighting its standalone potential and expanding financing options amid Beijing's push for semiconductor self-sufficiency.

New Oriental Education & Technology climbed 7.15% following a Zacks Research upgrade from 'strong sell' to 'hold', while NetEase rose 6.62%.

Separately, artificial intelligence chip designer Shanghai Biren surged more than 70% after debuting following a HKD 5.58bn (�532.4m) initial public offering priced at HKD 19.60, with the public offer more than 2,300 times subscribed and the international tranche 25.95 times subscribed.

South Korean equities led regional gains, with the Kospi rising 2.27% to a record closing high of 4,309.63.

Heavyweight Samsung Electronics jumped 7.29% after reports of customers praising its high memory bandwidth chips.

Among top gainers, Hyungji Elite surged 29.86%, CTR Mobility climbed 26.39% and Hankook Cosmetics advanced 21.51%.

Australian stocks edged higher, with the S&P/ASX 200 up 0.15% at 8,727.80.

DroneShield rose 8.12%, Nickel Industries gained 7.78% and Paladin Energy added 5.63%.

Across the Tasman Sea, New Zealand markets were closed for the Day After New Year's Day holiday.

Dollar mixed as oil prices manage small gains

In currency markets, the dollar was slightly stronger against the yen, rising 0.07% to last trade at JPY 156.86, while it weakened 0.38% on the Aussie to AUD 1.4936 and slipped 0.14% against the Kiwi to change hands at NZD 1.7333.

Oil prices were little changed, with Brent crude futures last up 0.07% on ICE at $60.89 per barrel, and the NYMEX quote for West Texas Intermediate rising 0.1% to $57.48.

Reporting by Josh White for Sharecast.com.