Japan's Nikkei 225 surged to a record 66,428.81 and South Korea's KOSPI jumped 5% to an all-time high, powered by an AI-driven rally in semiconductor stocks.
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Nikkei 225 hits record 66,429 as AI chip rally lifts Japan, Korea stocks
Japan's Nikkei 225 climbed 2.2% to a record 66,428.81 and South Korea's KOSPI surged 5% to 8,457.9 as an AI-fueled rally in chipmakers swept across Asian markets on Wednesday.
The gains followed a record session on Wall Street, where the S&P 500 rose 0.61% to 7,519.12 and the Nasdaq Composite added 1.19% to 26,656.18, both closing at all-time highs. Technology shares across the region continued to benefit from optimism surrounding artificial intelligence spending after Micron Technology rallied 19.29% on Wall Street following a bullish brokerage upgrade from UBS that projected more than 100% upside, pushing the memory chipmaker's market capitalization above $1 trillion.
SK Hynix jumped nearly 14%, pushing its market capitalization above $1 trillion for the first time, joining rivals Samsung Electronics and Micron Technology in the trillion-dollar club. Samsung Electronics shares also hit a record high, climbing as much as 8%, after unionised workers approved a wage and bonus agreement that averted a potentially disruptive strike. The KOSPI's 5% surge marked its largest single-day gain in months, with chipmakers accounting for the bulk of the advance.
Geopolitical risks cap broader gains
Still, gains in regional equities were capped by concerns that renewed U.S. military strikes on Iranian targets could derail negotiations aimed at ending the Middle East conflict. Brent crude hovered near $99 per barrel amid continued supply disruptions through the Strait of Hormuz, keeping energy costs elevated and feeding inflation concerns across the region.
China's Shanghai Composite fell 1.1%, while the blue-chip CSI 300 index eased 0.7%. Hong Kong's Hang Seng index slipped 0.8% despite chipmaking stocks advancing. India's Nifty 50 ticked 0.1% higher. Singapore markets were closed for a public holiday.
Central bank decisions in focus
Australia's S&P/ASX 200 edged up 0.2% after data showed underlying consumer prices rose 3.4% year-on-year in April, from 3.3% in March, reinforcing views that the Reserve Bank of Australia may keep interest rates elevated for longer. The Reserve Bank of New Zealand held its official cash rate at 2.25% but signaled that future rate hikes would likely be needed sooner and by more than previously expected due to mounting inflation pressures from higher energy costs. The central bank warned inflation could peak at 4.3% later this year as the Middle East conflict drives up fuel and petrochemical prices. New Zealand's NZX 50 index rose 0.9%.
Globally, investors awaited further developments in Middle East diplomacy and upcoming U.S. inflation data on Thursday, which will provide the next test for risk appetite across Asian markets.
This article is for informational purposes only and does not constitute investment advice.
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