Asian stocks surged, with the KOSPI at a record high and the Nikkei above 58,000, as markets awaited U.S. jobs data.

Most Asian equities advanced on Thursday, led by a record-breaking surge in South Korea, where chip stocks powered gains. Japanese shares were mostly steady after earlier climbing to a new all-time high above 58,000, supported by optimism surrounding the so-called “Takaichi trade.”

Regional upside was limited, however, after stronger-than-expected U.S. employment data underscored the resilience of the labor market. While the figures eased worries about the health of the world’s largest economy, they also reduced expectations for near-term interest rate cuts by the Federal Reserve.

On Wall Street, major indexes finished largely unchanged overnight, with futures trading flat during Asian hours.

KOSPI sets record as Samsung rallies on AI momentum

In Seoul, the KOSPI surged nearly 3% to a historic high of 5,515.8, extending gains fueled by robust demand for AI-related semiconductors.

Samsung Electronics jumped more than 6% to record levels after a senior executive emphasized the firm’s technological leadership in next-generation HBM4 (high-bandwidth memory) chips. The comments boosted confidence in Samsung’s production plans and its competitive positioning in advanced AI memory markets.

Investors are increasingly viewing HBM4 as a key driver of the next phase of AI hardware expansion, supporting profit margins and earnings visibility.

SK Hynix also rose 3.5%, buoyed by expectations of sustained demand for high-end memory chips used in AI servers.

Nikkei surpasses 58,000 milestone

Japan’s Nikkei 225 briefly broke above the 58,000 mark for the first time, hitting a new record before trimming gains to trade flat. The broader TOPIX index climbed 1.5% to a fresh all-time high of 3,888.94.

The rally has been partly linked to optimism over Prime Minister Sanae Takaichi’s election win. Investors have responded positively to her pro-growth agenda, which includes backing domestic industries, increasing defense spending, and maintaining supportive financial conditions—policies seen as favorable for exporters and cyclical sectors.

Strong U.S. jobs data tempers Fed cut expectations

U.S. data released Wednesday showed nonfarm payrolls increased by 130,000 in January, well above forecasts, while the unemployment rate unexpectedly dipped to 4.3% from 4.4%. The figures highlighted ongoing strength in the labor market.

Although the report eased fears of an economic slowdown, it also dampened hopes for imminent Federal Reserve rate reductions.

Elsewhere in Asia-Pacific, Australia’s S&P/ASX 200 gained 0.5% and Singapore’s FTSE Straits Times rose 0.7%. China’s CSI 300 and Shanghai Composite were mostly unchanged, while Hong Kong’s Hang Seng fell more than 1%, diverging from regional trends. India’s Nifty 50 futures edged up 0.1%.

Sources: Ayushman Ojha