Asian Stocks Rally As Chipmakers Surge On AI Demand

Asian equities advanced on Monday, driven by a sharp technology rally in chipmakers alongside robust artificial-intelligence demand. The gains came as military actions in the Middle East pushed Brent crude near $96.45 a barrel and stronger-than-expected U.S. employment data heightened expectations for Federal Reserve interest rate hikes.

Regional markets kicked off the week with distinct crosscurrents, balancing an intense enthusiasm for semiconductor supply chains against mounting macroeconomic and geopolitical friction. While chip-related shares surged across Tokyo and Seoul, investors simultaneously contended with soaring energy shipping costs and shifting monetary policy bets ahead of a dense calendar of central bank meetings.

Semiconductor Surge and Artificial Intelligence Demand

Technology companies dominated the session across major Asian indices, lifted by optimism surrounding artificial-intelligence infrastructure spending. South Korea’s KOSPI led regional gains with a 3.4% surge, while Japan’s Nikkei 225 climbed 1.9%. The MSCI Asia Pacific Index gained 1.1%, while its index excluding Japan rose about 0.9%.

The momentum originated from strength in U.S. technology stocks following OpenAI’s unveiling of GPT-6 Astra, which reignited investor confidence in the semiconductor supply chain. In Seoul, SK Hynix jumped 6.1% while Samsung Electronics gained more than 4%. Japanese chip shares mirrored the advance, featuring strong performances from Kioxia, which surged 7.6%, and Murata Manufacturing, which rose 4.3%. Tokyo Electron rose 4.5% in early trading and Lasertec gained 7.1%.

Elsewhere in the technology sector, Taiwan Semiconductor Manufacturing climbed 1.5%. Foxconn was little changed despite reporting record August revenue of T$921.8 billion, up 52% from a year earlier, marking its second straight month above T$900 billion. The company expects third-quarter operations to beat market expectations as AI demand and seasonal technology sales provide support.

Crude Oil Spikes and Geopolitical Pressures

While technology shares rallied, energy markets introduced immediate inflation anxieties. Brent crude rose to about $96.45 a barrel, while West Texas Intermediate traded near $91.85 after U.S. attacks on three Iranian oil tankers heightened concerns over supply disruptions around the Strait of Hormuz. The upward pressure followed climbing almost 10% during the previous week.

Asian Stocks Rally As Chipmakers Surge On AI Demand — Photo: econotimes.com

Iran has threatened to establish a restricted zone outside the Strait of Hormuz, raising the risk of further disruption to energy flows. Because major Asian economies include several large oil importers, the surge in crude created an additional inflation risk, and the Federal Reserve said in its July policy statement that inflation remained elevated partly because supply shocks had increased prices in some sectors, including energy.

Central Bank Decisions and U.S. Employment Data

Underpinning the cautious macro environment were stronger-than-expected U.S. labor market figures. August nonfarm payrolls increased by 162,000, exceeding forecasts, reinforcing a hawkish stance from the Federal Reserve and strengthening the case for a more hawkish central bank. U.S. markets were closed Monday for the Labor Day holiday, while U.S. stock-index futures trade on a holiday schedule, making liquidity thinner.

Markets responded by adjusting rate expectations ahead of the Fed’s next policy meeting scheduled for Sept. 15-16, according to the central bank’s official calendar. The July meeting ended with the federal funds target range at 3.5%-3.75%, while three policymakers voted for a 25-basis-point increase. Investors are now awaiting Friday’s U.S. consumer price report for further clues about the Fed’s September rate decision, while elevated Treasury yields continue to keep financial conditions tight.

Chinese and Regional Market Performance

Chinese markets were mixed, with the CSI 300 gaining 0.2% while Hong Kong’s Hang Seng Index dropped about 1.2%. Chinese technology shares were mixed: Tencent fell 3.9%, Alibaba fell 5.6%, Baidu fell 1.5%, NetEase fell 1.9% and JD.com fell 0.8%, while MiniMax rose 4.9% and some hardware names gained. Beijing unveiled a broader 360 billion yuan recapitalization of state-owned banks and insurers, including 300 billion yuan of special Treasury bonds, to bolster the financial system and support lending as growth slows.

Tech Drives Asian Stocks Rally to New Heights | The Asia Trade 2/10/2026

India’s Nifty 50 gained 0.1%, while GIFT Nifty futures indicated a modestly positive start after four straight weekly declines. Investors are also watching new pre-open session rules that bring the mechanism closer to the closing auction session, which has caused sharp swings around the close.