Asian markets rallied Thursday, propelled by a tech-driven surge on Wall Street. Traders welcomed robust US economic data, indicating a resilient American economy.
Seoul's Kospi index reached a record high, with chipmakers Samsung and SK hynix leading the advance. Tokyo also saw significant gains, driven by technology firms. Sydney, Singapore, Wellington, Manila, and Jakarta also reported increases.
Asian stocks are experiencing a strong start to the year as investors shift focus to the region's more attractively priced tech opportunities, following a substantial AI-led rally on Wall Street over the past two years. This trend contrasts with the struggles of major US tech giants like Amazon, Alphabet, and Microsoft since January, sparking debate over massive AI investments.
Recent strong US economic figures, including a better-than-expected jobs report, suggest the Federal Reserve may delay interest rate cuts. Minutes from the Fed's January meeting revealed policymakers' growing concern over inflation, tempering expectations for immediate rate reductions.
Oil prices stabilized after a significant surge on Wednesday, prompted by renewed US-Iran tensions. White House statements and US military presence in the Middle East contributed to market unease, though diplomatic talks continue.