Most Asian equity markets advanced on Thursday, following a rebound on Wall Street as investors welcomed easing tensions over U.S. demands related to Greenland. South Korean shares led regional gains, with the benchmark index climbing to a fresh record high.
Technology stocks also underpinned sentiment across the region after upbeat comments on artificial intelligence from NVIDIA Corporation CEO Jensen Huang, which helped fuel a broader tech rally.
Asian markets mirrored Wall Street’s overnight recovery after sharp losses earlier in the week. Investor confidence improved after U.S. President Donald Trump said he would not proceed with tariffs on Europe tied to Greenland and confirmed that his administration had reached a framework agreement over the Danish territory.
Optimism surrounding Greenland developments helped offset lingering concerns about Japan’s fiscal outlook, as attention turned to an upcoming policy decision from the Bank of Japan. U.S. equity futures also firmed, reflecting hopes that geopolitical risks would continue to ease.
South Korea outperforms as tech and autos surge
South Korean equities stood out, rising more than 2% to a record high. Gains were driven by chipmakers and auto stocks, as investors priced in stronger prospects tied to artificial intelligence and robotics.
Samsung Electronics and SK Hynix climbed between 3% and 4% after reports suggested plans to curb some memory chip output, a move expected to support pricing and margins amid strong AI-related demand.
Broader enthusiasm for AI-linked stocks was reinforced by Huang’s remarks at the World Economic Forum, where he described artificial intelligence as driving the “largest infrastructure buildout in human history.”
Automaker Hyundai Motor added 1.1%, extending a recent rally and hitting a record high on optimism around its robotics and physical AI initiatives. Investors largely looked past weaker-than-expected fourth-quarter GDP data, with analysts forecasting a recovery later this year.
Analysts at ANZ said growth momentum is expected to strengthen, supported by AI-driven demand, rising tech exports, and a potential recovery in domestic consumption as equity markets remain firm.
Japan rebounds as BOJ decision awaited
Japanese stocks also rebounded sharply, with major indexes rising between 1% and 2%, recouping much of the week’s earlier losses. Bank shares gained as concerns over heavy fiscal spending eased, while technology stocks advanced on the back of Huang’s comments.
SoftBank Group surged more than 13%, while chip-testing equipment maker Advantest rose nearly 5%.
Japanese government bond yields eased after a prolonged selloff pushed yields to multi-decade highs. Markets are now focused on the Bank of Japan’s two-day meeting, with policymakers widely expected to keep interest rates unchanged.
Mixed performance elsewhere in Asia
Australian shares climbed 0.8%, supported by mining stocks. South32 jumped nearly 5% after posting strong manganese production for the December quarter. In contrast, Fortescue Metals Group fell more than 4% as concerns over softer iron ore prices outweighed solid shipment data.
Stronger-than-expected Australian jobs figures pointed to a tight labor market, reducing expectations of near-term rate cuts from the Reserve Bank of Australia.
Singaporean and Indian stocks also posted gains, with Indian markets rebounding after recent losses driven by trade uncertainty and weak corporate earnings. Chinese markets lagged the region, trading in a narrow range, while Hong Kong equities edged slightly lower.
