Asian stock markets soared to new record highs on Thursday, driven by renewed investor confidence in artificial intelligence (AI) and the rapid growth of technology-focused industries. The surge mirrored Wall Street’s strong performance, where both the S&P 500 and Nasdaq closed at record levels amid optimism over corporate earnings and AI expansion.
Regional Markets Surge on Tech Momentum
In Asia, key indices across Japan, South Korea, and Taiwan led the regional advance. Japan’s Nikkei 225 rose 1.8%, boosted by gains in electronics and robotics firms. South Korea’s Kospi climbed 1.5%, powered by semiconductor heavyweights Samsung Electronics and SK Hynix. Meanwhile, Taiwan’s TAIEX jumped 1.7%, with TSMC — the world’s top chip manufacturer — driving momentum thanks to unrelenting global demand for AI infrastructure components.
“The AI wave remains the biggest driver of market sentiment,” said Kenji Matsumoto, an analyst at Nomura Securities. “Investors are confident that chipmakers and software firms will continue delivering strong earnings as AI adoption accelerates globally.”
China and Hong Kong Join the Upswing
In China, the Shanghai Composite Index edged up 0.6% as investors weighed optimism about tech innovation against concerns about the pace of the country’s broader economic recovery. Hong Kong’s Hang Seng Index gained 1.2%, lifted by a rebound in major tech names such as Alibaba and Tencent.
Wall Street Sets the Tone
The rally followed a strong overnight session on Wall Street, where the Nasdaq Composite hit a new record high fueled by earnings optimism from leading AI players including Nvidia, Microsoft, and Alphabet. The S&P 500 also touched record levels, highlighting continued confidence in the global technology sector despite macroeconomic uncertainties.
“AI remains a transformative force, and investors are betting on long-term structural growth rather than short-term volatility,” said Sarah Ling, a market strategist at HSBC.
Market Outlook: Confidence Tempered by Valuation Risks
With inflation pressures easing and Asian central banks maintaining stable monetary policies, regional equity markets are expected to retain upward momentum. However, analysts warn that valuations — especially in the tech sector — are becoming stretched, potentially exposing markets to corrections if growth slows.
Despite those risks, the broader sentiment remains upbeat. The combination of AI innovation, semiconductor demand, and steady macroeconomic policy continues to propel Asia’s markets to new highs, underscoring the region’s critical role in the global technology ecosystem.
