Asia rallies between records and profit-taking: tech and semiconductors lead the markets

Asian markets closed mixed but broadly positive, with the technology sector once again in the spotlight. In South Korea, the KOSPI ended the session at 5.85K points after touching an intraday high of 5.93K, setting fresh record levels. The benchmark was supported by strong demand for next-generation semiconductors, amid renewed optimism from international investors.

A weaker session, however, for Japan’s Nikkei 225, which settled at 56.92K points, down 1.1%, as profit-taking emerged following the recent rally. In Hong Kong, the Hang Seng Index climbed more than 2%, reaching a new annual intraday high of 27.08K, driven by heavyweight technology stocks. Mainland China moved in the opposite direction, with the Shanghai Composite falling 1.2% to 4.08K points, though still hovering near its highest levels in recent months.

Among individual stocks, Samsung Electronics stood out on the Korean market, gaining more than 6%, supported by enthusiasm surrounding next-generation HBM4 chips tied to artificial intelligence applications. In Tokyo, SoftBank Group surged 11.95% following improved guidance from one of its subsidiaries, helping to cushion the index’s overall decline.

In Hong Kong, Alibaba Group rose nearly 6% intraday, while Tencent added 4%, confirming the central role of big tech in the ongoing rally. On the mainland market, East Money Information (+5.7%) and GigaDevice Semiconductor (+6.4%) also outperformed, highlighting the strength of domestic technology plays.

Overall, the backdrop remains characterized by strong upward momentum, with capital flows concentrated in technology and semiconductor stocks. However, after the recent surge to new highs, investors are increasingly focused on risk management amid the potential for short-term profit-taking.

Andrea Pelucchi