Asian stock markets opened the new year higher on Friday, led by Hong Kong and South Korea as technology shares rallied, while holiday closures in major markets kept trading volumes thin.
Japan and mainland China remained closed for holidays. Despite subdued activity, investor risk appetite was underpinned by continued strength in technology and semiconductor stocks, extending gains from the end of last year.
Most Asian equity markets closed 2025 with strong advances, driven largely by a powerful rally in technology stocks amid accelerating demand for artificial intelligence, data centres and advanced semiconductors.
Hang Seng, KOSPI jump as chipmakers rally
Hong Kong shares surged 2% on Friday, led by technology and internet stocks. The Hang Seng Index closed 2025 up more than 27%, underpinned by bets on China’s push for self-reliance in semiconductor manufacturing.
South Korea’s KOSPI rose 1.3%, with heavyweight chipmakers Samsung Electronics and SK Hynix gaining between 2.5% and 4%.
The KOSPI ranked among the world’s top-performing major equity markets in 2025, soaring over 75% on strong demand for semiconductors used in artificial intelligence and high-performance computing.
Globally, technology stocks regained momentum toward year-end as optimism around artificial intelligence intensified. A late-December rally in U.S. tech shares helped lift sentiment across Asian markets, reinforcing the view that AI investment will remain a key driver of equity performance into 2026.
Elsewhere, regional markets were mostly subdued amid holiday-thinned trading.
Australia’s S&P/ASX 200 inched up 0.2%, while Singapore’s Straits Times Index rose 0.4%. Futures linked to India’s Nifty 50 also gained 0.2%.
Sources: Investing
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