Asia Stocks Rise as South Korea Hits Record High
Asian equities moved higher on Monday, led by strong gains in South Korea, where the KOSPI surged to a record high. Meanwhile, Hong Kong markets also advanced, supported by renewed strength in technology stocks driven by artificial intelligence momentum.
Trading volumes across the region remained relatively subdued due to market holidays in Japan and mainland China. However, broader sentiment stayed positive as investors reacted to last week’s rally on Wall Street.
Markets Eye Earnings and Key U.S. Data
U.S. stock futures showed limited movement during Asian hours, with investors focusing on a busy week of corporate earnings and the upcoming nonfarm payrolls report.
At the same time, caution persisted due to geopolitical risks, particularly the ongoing tensions involving Iran.
Chipmakers Drive South Korea’s Rally
South Korea’s KOSPI jumped 3.5% to a record 6,828.33 points, making it the best-performing market in the region.
The rally was driven primarily by strong gains in memory chip giants Samsung Electronics and SK Hynix.
SK Hynix led the gains with a 6.8% surge, also reaching record levels, while Samsung added 2.8%. Both companies recently reported robust first-quarter earnings and highlighted ongoing supply shortages in the memory chip market, which are expected to support pricing and revenue growth.
These firms are key suppliers to AI leaders such as Nvidia, further benefiting from the global AI boom.
Hong Kong Gains on Tech Sector Strength
Hong Kong’s Hang Seng Index rose 1.7%, fueled by a rebound in major technology stocks.
Companies including Baidu, SMIC, and Xiaomi all posted gains exceeding 4%.
Baidu recovered part of its recent losses, while SMIC continued to benefit from optimism surrounding China’s AI sector. Xiaomi also gained after reporting strong electric vehicle sales, exceeding 30,000 units in April.
Broader Asian Markets Follow Wall Street Gains
Other Asian markets also moved higher, taking cues from last week’s strong performance in U.S. equities.
Singapore’s Straits Times Index rose 0.5%, while futures tied to India’s Nifty 50 edged up 0.1%.
In contrast, Australia’s ASX 200 slipped 0.2% as investors anticipated another interest rate hike from the Reserve Bank of Australia.
Rate Hike Expectations Weigh on Australia
The Reserve Bank of Australia is widely expected to raise interest rates by 25 basis points, following a cumulative 50 basis points increase earlier this year.
The central bank has maintained a hawkish stance due to persistent inflation, which has been further exacerbated by rising energy prices linked to geopolitical tensions involving Iran.
