Asian tech rally lifts regional markets as geopolitical risks linger

Asian equity markets closed mixed but broadly firmer, as powerful momentum in technology and semiconductor shares offset persistent geopolitical and trade-related concerns. In Tokyo, the Nikkei 225 advanced 0.9% to 57.35K, supported by strong buying in chip-equipment and AI-linked names. Investors continued to rotate into companies seen as key beneficiaries of the global artificial intelligence buildout, reinforcing Japan’s positioning within the semiconductor supply chain. South Korea outperformed the region, with the KOSPI surging 1.8% to a record 5.95K. The rally was fueled by heavyweight chipmakers, as expectations of sustained global demand for high-performance memory and AI infrastructure components bolstered sentiment. In mainland China, the Shanghai Composite Index rose 1.2% to 4.13K. The reopening of markets after the Lunar New Year holiday brought renewed risk appetite, with investors betting on stronger consumer activity and potential policy support to stabilize growth.

Technology stocks were the undisputed leaders of the session. In Japan, Advantest Corp jumped 4.6%, while Disco Corp gained 2.2%, extending recent advances tied to AI-driven capital expenditure cycles. Seoul’s market was similarly propelled by chip heavyweights. SK Hynix Inc climbed 4.8%, and Samsung Electronics Co Ltd added 3.2%, underscoring investor confidence in the durability of semiconductor earnings.

By contrast, segments perceived as vulnerable to rapid AI adoption - particularly certain cybersecurity and software plays - came under pressure. The divergence highlights a pronounced rotation toward clear AI beneficiaries and away from firms facing potential technological disruption. While optimism surrounding technology remains strong, markets continue to navigate diplomatic frictions and evolving trade policies. For now, however, the region’s equity trajectory appears firmly anchored to the global AI investment cycle.

Andrea Pelucchi