Asian markets rally to new highs as AI and semiconductors drive investor optimism

In Japan, the Nikkei 225 surged 2.2% to close at 58.58K, marking a new record high. The advance underscores mounting investor confidence in the country’s technology sector, as AI-driven demand continues to reshape capital allocation. Export-oriented chip equipment makers and high-tech manufacturers were among the main beneficiaries of renewed buying interest.

South Korea’s Kospi climbed 2.1% to 6.09K, supported by strong inflows into semiconductor heavyweights. The rally reflects expectations that next-generation AI infrastructure and memory solutions will sustain earnings momentum. Meanwhile, Hong Kong’s Hang Seng Index added 0.5% to 26.74K, lifted by technology counters following fresh government initiatives aimed at strengthening AI research and development. On the mainland, the Shanghai Composite advanced 0.6% to 4.14K, buoyed by policy support and improving risk appetite.

Technology and semiconductor leaders dominated stock-specific action. In Tokyo, Advantest jumped 4.6% after unveiling new AI-related products, reinforcing its strategic positioning in chip testing equipment. Disco gained 2.2% on expectations of sustained demand for semiconductor manufacturing tools. In Seoul, Samsung Electronics rose 3.2%, while SK Hynix outperformed with a 4.8% gain following the launch of next-generation AI memory chips, highlighting the central role of advanced memory in AI data centers.

Hong Kong-listed Alibaba advanced 5.13% amid improving sentiment in e-commerce, and Meituan soared 9.71% after robust earnings. However, not all tech names participated: JD.com fell 8.32% on profit-taking, while Japan’s Trend Micro slid more than 7% amid concerns that AI could disrupt traditional cybersecurity models. Hyundai Motor also eased 2.8% as investors locked in recent gains.

Overall, investors are clearly rewarding companies with tangible AI exposure and scalable innovation, while trimming positions in stocks facing structural uncertainty. The region’s equity performance signals a strong short-term bias toward growth sectors, with semiconductors and AI at the heart of the rally.

Andrea Pelucchi