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Most Asian stock markets edged higher on Thursday, led by a sharp rally in South Korea where shares surged to record highs on strong gains in chipmakers. Japanese equities, meanwhile, traded flat after touching a fresh all-time peak above the 58,000 mark, as optimism surrounding the so-called “Takaichi trade” began to level off.
Broader gains across the region were tempered by strong U.S. jobs data released overnight, which reinforced confidence in the resilience of the U.S. economy but also reduced expectations for near-term interest rate cuts by the Federal Reserve. Wall Street closed largely flat, and U.S. equity futures were little changed during Asian trading hours, offering limited directional cues.
South Korea powers higher on AI-driven chip optimism
South Korean equities stood out as the region’s top performer. The KOSPI index jumped nearly 3% to a record high of 5,515.8 points, extending a powerful rally fueled by sustained demand for artificial intelligence-related semiconductors.
Samsung Electronics led the advance, with shares soaring more than 6% to all-time highs. Investor sentiment was boosted after a senior executive emphasized the company’s technological leadership in next-generation HBM4 (high-bandwidth memory) chips, reinforcing confidence in Samsung’s production roadmap and its competitive position in advanced AI memory solutions.
Market participants have increasingly positioned for HBM4 to drive the next phase of AI hardware expansion, viewing it as a key catalyst for stronger margins and improved earnings visibility across the semiconductor sector.
Japan steadies after record run
In Japan, equities consolidated after a strong recent rally. The benchmark index hovered near flat levels after briefly pushing above 58,000 points earlier in the session, marking a fresh record high. The pause followed a period of strong gains linked to expectations of policy continuity and market-friendly reforms under Prime Minister Sanae Takaichi—often referred to as the “Takaichi trade.”
Macro headwinds cap regional upside
Despite the positive tone in parts of Asia, stronger-than-expected U.S. employment data weighed on broader sentiment by reinforcing the view that the Federal Reserve may keep interest rates higher for longer. While the data eased concerns about U.S. economic momentum, it also dampened hopes for imminent rate cuts, limiting risk appetite across global markets.
Overall, Asian equities remained supported by sector-specific strength—particularly in technology and semiconductors—but macroeconomic uncertainty and shifting Fed expectations continued to cap gains across the region.
