Asia closes higher, Tokyo nears record highs as tech rally supports equities

Nikkei and Kospi lead Asian gains, focus on Fed and Middle East

Major Asian stock markets closed mostly higher on May 27, 2026, supported by the global rally in technology shares and improving sentiment surrounding diplomatic talks between the United States and Iran. Investor appetite was driven mainly by artificial intelligence and semiconductor stocks, following fresh records on Wall Street and continued momentum among major U.S. tech companies.

Closing performance of the main Asian stock indices

Here are the closing levels of the leading Asian benchmarks in today’s trading session:

1. Nikkei 225 (Tokyo): 64,999.41 points, broadly flat but still close to record highs
2. Hang Seng (Hong Kong): around 25,400 points, slightly lower
3. Shanghai Composite: around 3,420 points, modestly higher
4. Kospi (Seoul): 8,228.70 points, sharply higher (+2.3%)

Japan’s market benefited particularly from optimism surrounding the semiconductor sector, with strong buying activity in AI-related companies and chipmakers. Reuters reported that the Nikkei briefly moved above the 66,000-point threshold during intraday trading, marking a new historical record.

South Korea’s Kospi also posted a strong session thanks to the rally in technology stocks and renewed stability in the industrial sector, particularly after labor agreements involving Samsung.

China delivered a more mixed picture: Shanghai ended slightly higher, supported by better-than-expected macroeconomic data, while Hong Kong slipped amid profit-taking in technology shares.

Geopolitics, oil prices, and the Federal Reserve drive market sentiment

On the geopolitical front, investors continued to closely monitor developments in negotiations between Washington and Tehran. Reports suggesting a possible easing of tensions and diplomatic progress in the Strait of Hormuz contributed to lower oil prices and improved global market sentiment. Nevertheless, the situation remains fragile, with markets still concerned about the risk of renewed escalation.

Among the main factors influencing Asian equities today were:

1. the global rally in artificial intelligence-related stocks;
2. expectations surrounding upcoming U.S. inflation data and Federal Reserve policy decisions;
3. declining energy prices following diplomatic signals between the U.S. and Iran;
4. stronger-than-expected Chinese industrial data;
5. resilience in the semiconductor sectors of Japan and South Korea.

In China, Reuters highlighted that April industrial profits recorded their fastest growth in two years, helping support Shanghai despite ongoing concerns about international trade and domestic demand.

Investors remain cautious ahead of upcoming U.S. PCE inflation figures, considered crucial for understanding the future path of Federal Reserve interest rates during the second half of the year.

Andrea Pelucchi