Asian stocks rise as AI optimism returns

Asian stocks rallied strongly on Wednesday, with benchmarks in Seoul and Tokyo climbing to record levels as technology shares tracked a rebound on Wall Street.

Investors extended a broadly upbeat week across the region, increasing their exposure to artificial intelligence-related stocks. The move reflects a rotation away from the United States, where concerns have been mounting over stretched valuations and political and economic uncertainty.

Traders are also watching US President Donald Trump ahead of his State of the Union address. His tariff agenda was recently challenged by the Supreme Court, while markets are also assessing his stance on potential strikes on Iran.

Major US technology groups — often referred to as the Magnificent Seven — have struggled in 2026 to replicate the explosive gains of the previous two years. Investors are increasingly questioning the scale of spending on AI and the timeline for meaningful returns. Additional unease followed the rollout of new AI tools that could disrupt parts of the software industry.

A report by Citrini Research over the weekend outlined future scenarios in which emerging technologies could pressure sectors such as credit cards and food delivery. However, some concerns eased after AI firm Anthropic presented details highlighting how its systems can integrate with existing software.

Sentiment was further boosted by news that Facebook parent Meta Platforms had agreed to purchase millions of chips from semiconductor company Advanced Micro Devices. Attention now turns to earnings from chip giant Nvidia, which analysts say could significantly influence global markets.

Matt Weller of City Index cautioned that simply meeting expectations may not be enough to propel Nvidia shares higher, especially if cautious guidance fuels fears that demand for AI-related capital expenditure is slowing.

In Asia, Seoul’s Kospi index surged beyond the 6,000-point mark for the first time, driven by chipmakers Samsung Electronics and SK hynix. The index has gained more than 40 percent this year after soaring 76 percent in 2025.

Tokyo’s market rose more than one percent to a fresh peak, supported by advances in technology stocks including Advantest and Tokyo Electron.

In Taipei, gains were led by Taiwan Semiconductor Manufacturing Company, while markets in Hong Kong, Shanghai, Sydney and Wellington also traded higher.

The yen held steady against the dollar after weakening the previous day on reports that Japanese Prime Minister Sanae Takaichi had voiced concern to Bank of Japan Governor Kazuo Ueda about further interest rate increases. According to the Mainichi Shimbun, she adopted a tougher stance than at their meeting in November.

On currency markets, the dollar edged down to 155.70 yen. The euro slipped to $1.1779, while sterling eased to $1.3502. Oil prices were higher, with West Texas Intermediate up 0.6 percent at $66.05 per barrel and Brent crude rising 0.7 percent to $71.23.

In the United States, the Dow Jones Industrial Average closed 0.8 percent higher at 49,174.50, while London’s FTSE 100 ended flat at 10,680.59.