Asian Equities Climb as Japan and South Korea Hit Record Highs on Tech Strength

Regional Equities Advance on Technology Momentum

Most Asian stocks traded higher on Wednesday, with Japan and South Korea at the forefront of the rally. Japan’s Nikkei 225 rose nearly 2% to a record high of 58,319.0 points, supported by strength in technology shares and export-oriented sectors amid yen weakness. South Korea’s KOSPI gained more than 2%, reaching a record high of 6,122.98 points, also driven by robust performance in technology.

In South Korea, Hyundai Motor advanced as much as 10%, approaching a record high after Reuters reported that the company was planning a multi-billion-dollar investment in the country. Memory chip producers Samsung Electronics Co Ltd and SK Hynix Inc each rose about 2%, both hitting record highs ahead of closely watched earnings from industry bellwether Nvidia.

Australian shares similarly reached a record high. Strong earnings from index heavyweight Woolworths helped the market overcome hotter-than-expected inflation data for January, allowing equities to move higher despite the inflation surprise.

China, Hong Kong and Global Cues

Chinese stocks extended their gains after returning from the Lunar New Year holiday on a strong footing on Tuesday. Hong Kong markets also advanced, benefiting from a recovery in technology shares. Broader regional sentiment was supported by Wall Street’s positive overnight performance, as investors assessed the potential impact of artificial intelligence on the software sector.

S&P 500 Futures were up 0.1% by 22:14 ET (03:14 GMT), with market attention centered on upcoming earnings from Nvidia, widely regarded as an AI bellwether. These earnings are being closely monitored by investors across regions, given their perceived importance for the technology and semiconductor sectors.

U.S. President Donald Trump’s State of the Union address offered few direct signals for Asian markets, but trade tariffs remained an area of uncertainty. Trump stated that he would continue with his tariff agenda without Congressional approval, despite the Supreme Court striking down a significant portion of his tariff regime.

FAQ

Which Asian markets reached record highs?
Japan’s Nikkei 225 and South Korea’s KOSPI both reached record highs, with the Nikkei at 58,319.0 points and the KOSPI at 6,122.98 points.

What drove the gains in Japan and South Korea?
Both markets were supported mainly by strength in technology stocks, while Japan also benefited from export-oriented sectors amid yen weakness.

How did Australian markets react to inflation data?
Australian shares hit a record high, as strong earnings from Woolworths helped markets advance despite hotter-than-expected January inflation.

What external factors influenced regional sentiment?
Regional markets took positive cues from Wall Street’s gains, with additional focus on upcoming Nvidia earnings, while trade tariff uncertainty following President Trump’s State of the Union address remained in the background.