Most Asian stocks moved higher on Wednesday, with Japan and South Korea reaching record highs as technology shares led regional gains.
Australian equities also climbed to fresh peaks, supported by strong earnings from retail heavyweight Woolworths. Investors largely brushed aside hotter-than-expected January inflation data, focusing instead on corporate results and global market momentum.
Chinese markets extended gains after reopening from the Lunar New Year holiday with strong performance on Tuesday. Hong Kong stocks also advanced, helped by a rebound in technology shares.
Regional sentiment was lifted by a positive session on Wall Street overnight, as investors reassessed concerns about the potential impact of artificial intelligence on the software sector. S&P 500 futures were up 0.1% by 22:14 ET (03:14 GMT), with markets closely watching upcoming earnings from AI leader Nvidia.
U.S. President Donald Trump’s State of the Union speech offered limited direct guidance for Asian markets. However, trade tariffs remained a source of uncertainty after Trump said he intends to proceed with his tariff plans without Congressional approval, despite a Supreme Court ruling that struck down much of his earlier tariff program.
Japan and South Korea Hit Record Highs on Tech Strength
Japan’s Nikkei 225 surged nearly 2% to a record 58,319.0 points, while South Korea’s KOSPI climbed more than 2% to an all-time high of 6,122.98 points.
Technology stocks were the primary drivers of gains in both markets. In Japan, export-focused companies also benefited from yen weakness.
In South Korea, Hyundai Motor jumped as much as 10%, approaching record levels after reports of a planned multi-billion-dollar domestic investment. Major chipmakers Samsung Electronics and SK Hynix rose around 2% each, hitting record highs ahead of Nvidia’s earnings announcement.
Nvidia, currently the world’s most valuable company, is expected to report strong earnings growth after the U.S. market close. Investors are closely monitoring whether the company continues to signal robust AI-driven demand.
Recent concerns about AI-related disruptions had weighed heavily on global stocks, particularly in Hong Kong. On Wednesday, the Hang Seng index rose 0.8% as local tech stocks recovered some of their recent losses.
Australia Reaches Record Despite Inflation Concerns
Australia’s ASX 200 index climbed more than 1% to a record high of 9,130.30 points.
The benchmark was supported by gains in Woolworths after the company reported strong half-year earnings and expressed confidence about the current period. Mining giants BHP, Rio Tinto and Fortescue Metals also advanced between 1.8% and 2.7%, with Fortescue leading after reporting solid results.
Despite stronger-than-expected consumer price index data for January, which showed core inflation rising further above the Reserve Bank of Australia’s target range, equities continued to rise. The data increases the likelihood of additional interest rate hikes following the RBA’s recent 25 basis point increase.
Analysts at ANZ noted that the inflation reading raises the risk of a rate hike in May, a development that could weigh on local stocks.
China and India Extend Gains
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes both gained 1.2%, building on strong momentum from earlier in the week. Markets were supported by optimism over lower U.S. trade tariffs and stronger consumer spending during the Lunar New Year period.
India’s Nifty 50 rose 0.6% in early trading, with software stocks recovering after recent declines. In contrast, Singapore’s Straits Times index slipped 0.1%.
Overall, Asian markets were buoyed by strength in global technology shares and optimism surrounding Nvidia’s earnings, even as inflation concerns and trade uncertainty remained in focus.
