Asian stock markets began 2026 on a positive note on Friday, with Hong Kong and South Korea leading regional gains as technology and semiconductor stocks rallied. Trading activity remained light, however, as holiday closures in several major markets limited volumes.
Markets in Japan and mainland China stayed closed for public holidays. Despite the subdued liquidity, investor sentiment was supported by continued strength in technology shares, extending momentum from the final sessions of last year.
Most Asian equity markets closed 2025 with strong gains, largely driven by a powerful rally in technology stocks. Rising demand for artificial intelligence, data centers, and advanced semiconductors played a central role in lifting regional markets.
Hong Kong and South Korea Lead on Chip Strength
Hong Kong equities jumped 2%, led by gains in technology and internet-related stocks. The Hang Seng Index ended 2025 with annual gains of more than 27%, supported in part by increased investment in domestic Chinese chip manufacturing.
South Korea’s KOSPI rose 1.3%, with heavyweight chipmakers Samsung Electronics and SK Hynix climbing between 2.5% and 4%.
The KOSPI was among the top-performing major equity markets globally in 2025, surging more than 75% on the back of strong global demand for semiconductors used in AI and high-performance computing.
Globally, technology stocks regained momentum toward the end of the year as optimism around artificial intelligence intensified. Strong gains in U.S. tech shares in late December helped lift sentiment across Asia, reinforcing expectations that AI-driven investment will remain a key catalyst for equities in 2026.
Other Asian Markets See Modest Gains
Elsewhere in the region, markets were more restrained amid holiday-thinned trading.
Australia’s S&P/ASX 200 edged 0.2% higher, while Singapore’s Straits Times Index gained 0.4%.
Futures linked to India’s Nifty 50 also pointed higher, rising 0.2%.
