Asian stock markets rallied Wednesday, with Seoul and Tokyo hitting record highs, driven by a surge in technology stocks. This upturn follows a rebound on Wall Street and builds on a generally strong week for the region.
Investors are channeling funds into artificial intelligence (AI) plays, shifting focus from New York where concerns are growing over elevated valuations and political and economic uncertainties. Major tech firms globally have faced scrutiny over their substantial AI investments and timelines for returns.
Recent developments, including a presentation by AI company Anthropic highlighting technology compatibility and Meta's agreement to purchase chips from AMD, have bolstered market sentiment. The focus now shifts to Nvidia's earnings report, which analysts anticipate could significantly influence market direction.
Seoul's Kospi index surpassed 6,000 points for the first time, with chipmakers Samsung and SK hynix leading the gains. Tokyo's Nikkei also climbed over 1 percent to a new peak, with Advantest and Tokyo Electron among the top performers. Other markets, including Hong Kong, Shanghai, Sydney, and Wellington, also traded higher.