Asia Markets Rally on US Rate Hopes, Tech Gains Fuel Surge
HONG KONG/SINGAPORE – Asian stock markets largely advanced Wednesday, buoyed by optimism surrounding potential interest rate cuts in the United States and a notable boost to chipmakers following a deal between OpenAI and South Korean tech giants Samsung and SK Hynix.
Tokyo, Sydney, Singapore, Wellington, and jakarta all posted gains, while Hong kong climbed more than 1 percent as traders returned from a break. Seoul and Taipei led the regional rally, driven by strong performance in the semiconductor sector.
The gains follow a positive session on Wall Street,where the S&P 500 and Nasdaq both reached record highs. Asia appeared to “take up the baton,” according to market observers.
SK Hynix soared approximately 12 percent and Samsung jumped around 5 percent after announcing preliminary agreements to supply chips and equipment for OpenAI’s Stargate project during a visit to Seoul by OpenAI CEO Sam Altman. The Kospi index in South Korea subsequently added over 3 percent, reaching a record high.
Taiwan’s Taiex index also saw significant gains, rising almost 2 percent, with TSMC, the island’s leading chipmaker, climbing 3 percent. Regional tech firms including Alibaba, Tencent, and JD.com, all listed in Hong Kong, experienced increases between 2 and 3 percent.
the surge in tech stocks reflects broader investor enthusiasm for artificial intelligence, with hundreds of billions of dollars flowing into the sector this year. Analysts also anticipate continued layoffs in the professional and business services sector as AI adoption accelerates. Recent government layoffs enacted during the administration of Donald Trump are also expected to contribute to economic headwinds.
