Stock markets in Seoul and Tokyo surged to record highs on Wednesday, as technology shares powered a strong rally across Asia.
The jump followed a solid rebound on Wall Street, where investors returned to buying tech stocks after recent pressure.
AI fever drives markets
Investors across Asia continued piling into artificial intelligence-related stocks. There’s been a noticeable shift in momentum from New York to Asian markets, especially as concerns grow in the U.S. about high valuations and political uncertainty.
Markets are also watching Donald Trump, whose State of the Union address is drawing attention. This comes after the Supreme Court of the United States dealt a setback to his tariff policy last week, and as he weighs possible strikes on Iran.
Mixed signals for US tech giants
Wall Street’s “Magnificent Seven” tech giants have struggled in 2026 compared to their massive gains in the past two years. Investors are starting to question how long it will take for huge AI investments to pay off.
Fresh concerns also surfaced after a report by Citrini Research suggested new AI tools could disrupt sectors like credit cards and food delivery.
However, AI firm Anthropic eased some fears by highlighting how its technology works smoothly with existing systems.
Meanwhile, optimism got another boost after Meta Platforms Inc. announced a deal to buy millions of chips from Advanced Micro Devices (AMD).
All eyes are now on earnings from chip giant Nvidia, due later in the day. Analysts say its results could strongly influence global markets.
Matt Weller at City Index warned that simply meeting expectations may not be enough. Investors want strong guidance, especially with worries that AI spending could slow.
Asia breaks records
- Seoul’s Kospi surged past 6,000 points for the first time, led by chip giants Samsung Electronics and SK Hynix.
- Tokyo’s Nikkei 225 climbed 1.5% to a fresh record, with strong gains from Advantest and Tokyo Electron.
- In Taiwan, gains were supported by Taiwan Semiconductor Manufacturing Company.
Markets in Hong Kong, Shanghai, Sydney, and Wellington also posted gains.
Currency and oil
The Japanese yen held steady against the dollar after weakening earlier on reports that Prime Minister Sanae Takaichi expressed concerns to Bank of Japan Governor Kazuo Ueda about raising interest rates further.
In commodities, oil prices edged higher:
- US crude rose 0.6% to about $66 per barrel.
- Brent crude gained 0.7% to around $71 per barrel.
The bigger picture
Asian markets are riding the AI wave, while U.S. tech stocks face tougher questions about valuations and returns.
For now, momentum is on Asia’s side — but much will depend on Nvidia’s earnings and how global political tensions unfold in the coming days.
