Asian markets surge on tech rally. Nikkei jumps more than 4%, Kospi over 5%

Asian stock market closing data

Asian equities ended mostly higher on Thursday as investors returned to technology and semiconductor stocks following strong guidance from major U.S. chipmakers. Positive earnings updates from Micron and Qualcomm helped ease concerns over an overheating artificial intelligence trade. Major Asian indices at the close:

1. Nikkei 225 (Japan): 72,366.34 (+4.61%)
2. Hang Seng Index (Hong Kong): 23,090.27 (-1.38%)
3. Shanghai Composite (China): 4,125.76 (+0.30%)
4. Kospi (South Korea): 9,930.30 (+5.42)

Technology and semiconductor companies were the primary drivers of the rally, particularly in Japan and South Korea.

Geopolitical developments and oil prices support markets

Investor sentiment improved significantly after signs of easing tensions in the Middle East. Markets reacted positively to reports suggesting progress toward a preliminary agreement involving the United States and Iran, reducing concerns about disruptions in the Strait of Hormuz. The resulting decline in crude oil prices helped strengthen risk appetite:

1. Brent crude fell below $73 per barrel;
2. WTI dropped near $69 per barrel;
3. inflation concerns eased;
4. expectations for global economic growth improved.

Investors remain attentive to future developments in the region, as any escalation could quickly reverse the current positive momentum.

Artificial Intelligence drives a new wave of buying

The technology sector was the key catalyst behind Thursday's gains. Strong demand forecasts from Micron and Qualcomm reinforced expectations that the AI investment cycle remains intact. Key developments included:

1. Micron announced approximately $22 billion in customer commitments;
2. Qualcomm raised long-term expectations for its data-center business;
3. SK Hynix unveiled plans for a potential Nasdaq listing;
4. Samsung Electronics rallied strongly in Seoul.

Combined with lower oil prices and improving geopolitical conditions, these developments encouraged investors to increase exposure to Asian equities.

Andrea Pelucchi