Most Asian stocks advanced on Wednesday with Japanese and South Korean shares rallying to record highs on strength in technology stocks.
Australian shares also hit a record high, as strong earnings from index heavyweight Woolworths helped markets rise past hotter-than-expected inflation data for January.
Chinese stocks extended their gains after returning from the Lunar New Year holiday on strong footing on Tuesday, while Hong Kong benefited from a recovery in tech.
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Regional markets took positive cues from Wall Street’s overnight session, as investors questioned just how big an impact AI will have on the software sector. S&P 500 Futures rose 0.1% by 22:14 ET (03:14 GMT), with focus squarely on upcoming earnings from AI bellwether Nvidia.
U.S. President Donald Trump’s State of the Union address provided few direct cues for regional markets, although trade tariffs remained a point of uncertainty.
Trump claimed that he will proceed with his tariff agenda without Congressional approval, even after the Supreme Court struck down a bulk of his tariff regime.
Japan, South Korea at record highs as tech rises ahead of Nvidia Japan’s Nikkei 225 jumped nearly 2% to a record high of 58,319.0 points, while South Korea’s KOSPI rallied over 2% to a record high of 6,122.98 points.
Both indexes benefited from strength in tech shares, with the Nikkei also taking support from gains in export-oriented sectors, amid weakness in the yen.
In South Korea, Hyundai Motor (KS:005380) rallied as much as 10%, coming close to a record high after Reuters reported the company was planning a multi-billion-dollar investment in the country.
Memory chip giants Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660) rose about 2% apiece, hitting record highs ahead of closely watched earnings from industry bellwether Nvidia.
The world’s most valuable company is set to report strong earnings growth after the U.S. market close on Wednesday, with focus squarely on whether it will continue to signal robust AI-fueled demand.
Concerns over AI-related disruptions were a major weight on global stocks in recent weeks, with Asian markets– especially those in Hong Kong– logging steep losses.
Hong Kong’s Hang Seng rose 0.8% on Wednesday, with local tech names recouping a measure of recent losses.
Australia hits record high despite hot CPI print Australia’s ASX 200 also hit a record high on Wednesday, rising more than 1% to a peak of 9,130.30 points.
The ASX was buoyed by gains in retail giant Woolworths Ltd (ASX:WOW), after it clocked strong half-year earnings and said the current half was off to a good start.
Robust gains in major mining stocks also benefited the ASX, with BHP Group Ltd (ASX:BHP), Rio Tinto Ltd (ASX:RIO), and Fortescue Metals Group Ltd (ASX:FMG) up between 1.8% and 2.7%. Fortescue led gains after clocking strong half-year earnings.
