Asian Equities Climb on AI Enthusiasm and Global Market Support
Asian stock markets exhibited a strong positive trend on Wednesday, with major indices trading firmly in the green. This upward movement was largely driven by overnight gains on Wall Street and sustained investor excitement surrounding the ongoing artificial intelligence boom. Market participants also closely monitored US President Donald Trump's State of the Union address, which was delivered during Asian trading hours, adding a layer of geopolitical focus to the trading session.
Record-Breaking Performance in Japan Leads Regional Rally
In Japan, the benchmark Nikkei index achieved a fresh record high, setting a bullish tone across the Asia-Pacific region. The Nikkei surged by an impressive 1,384 points to close at 58,705, representing a substantial gain of 2.42%. This remarkable advance occurred despite recent tensions, as Beijing had moved just a day earlier to restrict exports to 40 Japanese companies and organizations, citing concerns over Japan's alleged "remilitarization."
South Korea's Kospi index followed suit, rallying by 2.28% to reach 6,106. Hong Kong's Hang Seng also inched higher, adding nearly 200 points to its tally. Meanwhile, mainland Chinese markets joined the upward trend, with both the Shanghai and Shenzhen indices posting gains exceeding 1% each.
Mixed Movements Within Japanese Market and Currency Dynamics
Within the Japanese equity landscape, stock movements displayed some unevenness. Shares of prominent companies like Subaru Corp and Mitsubishi Materials Corp moved higher, contributing to the overall positive sentiment. Conversely, stocks such as Eneos Corp and Sumitomo Heavy Industries experienced declines during the session.
Market analysts pointed to the softer yen as a supportive factor for export-oriented companies, including automotive giant Honda Motor Co and electronics leader Panasonic Corp. The US dollar eased slightly to 155.78 yen from 155.83 yen, marking a notable shift from its position near the 160 yen mark several months earlier. In parallel, the euro edged up to $1.1784 from $1.1779, reflecting subtle currency adjustments in the global forex market.
Wall Street Sets Positive Tone with Strong Tech Performance
US equity markets had already established a favorable backdrop overnight, providing momentum for Asian trading. The S&P 500 index rose by 0.8% on Tuesday, recovering nearly three-quarters of the steep decline from the previous session. The Dow Jones Industrial Average gained 370 points, equivalent to a 0.8% increase, while the Nasdaq composite climbed by 1%.
A standout performer was Advanced Micro Devices (AMD), which jumped 8.8% after announcing a multiyear agreement to supply chips to Meta Platforms. This partnership is designed to support Meta's ambitious artificial intelligence initiatives. Under the arrangement, Meta also secured an option to purchase up to 160 million AMD shares at just 1 cent each, a provision partly contingent on the volume of chips it ultimately purchases from the semiconductor company.
Commodities Market Shows Modest Gains
In the commodities trading arena, benchmark US crude oil rose by 45 cents to $66.08 per barrel. Brent crude, the international benchmark, added 47 cents to reach $71.24 per barrel, indicating a cautiously optimistic outlook in the energy markets amid the broader financial rally.
