Asia Stocks Mixed: Nikkei Hits Record High, Hong Kong Falls – Feb 12, 2026

Asian equity markets presented a mixed picture on Thursday, February 12, 2026, with Japan’s Nikkei 225 reaching a historic milestone while South Korea’s KOSPI surged to new all-time highs. Conversely, Hong Kong’s Hang Seng Index declined, and mainland Chinese markets saw modest gains. The performance occurred against a backdrop of concerns that robust U.S. Labor market data could dampen expectations for near-term interest rate cuts by the Federal Reserve.

Japanese Equities Reach New Heights

The Nikkei 225 briefly surpassed the 58,000 point level for the first time in its history during trading, extending its post-election rally. The gains were fueled by investor confidence in the economic policies of Prime Minister Sanae Takaichi’s government, which secured a landslide victory in the recent Lower House election. This outcome is perceived as providing the government with stability and the capacity to pursue long-term policy initiatives. However, the index pared some of its gains before the close.

The Nikkei 225 ultimately closed at 57,639.84, a decrease of 10.70 points, or 0.02%.

Mainland China Markets Trade Narrowly

Chinese mainland stock markets traded within a narrow range before closing with slight gains. Investor sentiment remained cautious following the release of stronger-than-expected U.S. Employment data for January. The data signaled a resilient U.S. Labor market, potentially leading the Federal Reserve to delay any reductions in interest rates.

The Shanghai Composite Index closed at 4,134.02, an increase of 2.03 points, or 0.05%.

Hong Kong Market Declines

Hong Kong’s Hang Seng Index closed lower, mirroring the trend in global markets. The stronger-than-expected U.S. Labor market data weighed on expectations for a dovish shift in Federal Reserve monetary policy, prompting investors to reduce risk exposure in regional assets.

The Hang Seng Index closed at 27,032.54, a decrease of 233.84 points, or 0.86%.

South Korean Stocks Hit Record Highs

South Korea’s benchmark Composite Stock Price Index (KOSPI) jumped by more than 3%, reaching a new all-time high. The gains were driven by strong performance in the technology and semiconductor sectors, fueled by capital inflows and speculative buying of large-cap stocks.

The KOSPI closed at 5,522.27, an increase of 167.78 points, or 3.13%.

The broader Asian market context reflects a sensitivity to U.S. Economic data and the implications for global monetary policy. The strong U.S. Jobs report has introduced a degree of uncertainty, potentially delaying anticipated easing cycles by major central banks. This shift in expectations is prompting investors to reassess risk allocations across asset classes and geographies. The “Takaichi trade,” referring to the market rally following Prime Minister Takaichi’s election victory, continues to be a significant driver in Japan, but even there, gains are being tempered by broader global economic considerations.

The performance of Softbank Group Corp. Also contributed to the positive sentiment in Japan, with shares spiking as much as 11.95% on Tuesday, February 10, 2026, following an upgraded full-year forecast from a subsidiary. The stock closed with a gain of 10.68%, building on a 6.3% increase the previous day.

Elsewhere in the region, Australia’s S&P/ASX 200 ended flat at 8,867.4. Overnight in the U.S., the S&P 500 posted back-to-back gains, rising 0.47%, while the Dow Jones Industrial Average reached a record high of 50,135.87, and the Nasdaq Composite jumped 0.9%.