Asian stock markets climbed broadly on Monday, driven by gains in technology and chipmaker shares amid renewed optimism around artificial intelligence. Investors also weighed China’s decision to hold key lending rates steady.
Major Wall Street indices closed mixed last week, with futures edging higher during Monday’s Asian trading session.
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Nikkei and KOSPI soar 2% on strong tech sector gains.
Regional markets climbed, supported by late-week strength in U.S. equities as technology stocks rebounded on easing concerns over heavy AI-related spending and stretched valuations.
Chipmakers, previously pressured by fears that capital expenditures might outpace near-term returns, recovered as investors recognized sustained demand linked to artificial intelligence and data centers.
Japan’s Nikkei 225 surged 2%, with the broader TOPIX index rising 0.8%. Advantest Corp (TYO:6857) gained over 5%, while SoftBank Group (TYO:9984) climbed more than 5%.
In Seoul, the KOSPI advanced 2%, led by heavyweight chipmakers Samsung Electronics (KS:005930) and SK Hynix Inc (KS:000660).
China’s Shanghai Composite increased 0.6%, and the Shanghai Shenzhen CSI 300 rose 0.8%.
Hong Kong’s Hang Seng index edged up 0.3%, with the Hang Seng TECH sub-index gaining 0.7%.
Elsewhere in Asia, Australia’s S&P/ASX 200 jumped 1%, while Singapore’s Straits Times Index added 0.7%.
Futures linked to India’s Nifty 50 edged up 0.1%.
China maintains lending rates unchanged.
Investors turned their attention to China, where the People’s Bank of China held the benchmark Loan Prime Rates (LPR) steady on Monday, maintaining the one-year LPR—which guides corporate lending—and the five-year LPR, a critical reference for mortgage rates, in line with consensus forecasts.
This move underscores the central bank’s cautious approach to monetary policy, prioritizing stability amid a delicate balancing act between sustaining economic growth and mitigating systemic financial risks.
As the year-end holiday season approaches, market liquidity is expected to taper off; nevertheless, investor appetite for technology and AI-related equities remains robust, rendering regional markets highly sensitive to developments on Wall Street.
Sources: Investing
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