Asian markets opened the week with divergent moves as renewed uncertainty over U.S. tariff policy damped risk appetite and holidays in China and Japan kept trading volumes light.
Hong Kong outpaced regional peers, buoyed by rebounds in local technology, industrial and automobile stocks, while South Korea pushed to fresh highs on strength among semiconductor names.
Market backdrop
Regional equities took some encouragement from Wall Street’s gains on Friday, which followed a U.S. Supreme Court ruling that a large portion of the previous administration’s trade tariffs could not be enacted under legislation intended for national economic emergencies. In response, U.S. President Donald Trump announced a 10% universal tariff under a different law and subsequently increased that levy to 15%. Against that backdrop, S&P 500 futures traded about 0.7% lower during Asian hours on Monday.
Hong Kong leads on bargain buying
Hong Kong’s Hang Seng index was the strongest performer in the region on Monday, climbing 2.7% as bargain hunters stepped in after steep losses the prior week. The rebound was led by gains in technology, industrial and automobile sectors, with investors seeking exposure to companies positioned to benefit from artificial intelligence-related demand.
Market attention in Hong Kong was also focused on mainland China, which remained on a week-long Lunar New Year break. China’s markets are scheduled to reopen on Tuesday, and traders noted the holiday often coincides with an economic boost from domestic activity. NVIDIA Corporation (NVDA) was highlighted as an AI industry bellwether, with the company due to report results later in the week.
South Korea’s KOSPI hits record high
South Korea’s benchmark index rose more than 1% to reach a record high, underpinned by strong performances from memory-chip makers. Samsung Electronics Co Ltd (KS:005930) and SK Hynix were cited as primary contributors to the advance amid expectations that AI-driven demand will lift sales of advanced memory components.
A report over the past week suggested Samsung may be well positioned to secure a significant supply agreement with NVIDIA for advanced memory chips used in AI processors. Samsung’s stock itself reached a record level on Monday.
Wider regional trends and trading conditions
Outside of the pockets of strength in Hong Kong and South Korea, broader Asian markets were largely rangebound. Holidays in China and Japan kept liquidity lower than usual, and a spate of weekend reports indicating that several countries were seeking renegotiation or clarity on tariffs added to investor caution.
U.S. tariff signals from the Trump administration indicated no intention to retreat from the new tariff stance, which left risk appetite fragile. As a result, traditional safe-haven assets such as gold and the Japanese yen attracted increased inflows.
Other regional moves included Singapore’s Straits Times index rising 0.4%, Australia’s ASX 200 falling 0.5%, and futures for India’s Nifty 50 index trading about 0.4% lower in morning trade.
Market commentary and thematic notes
AI-related demand dynamics remained a dominant theme for tech and semiconductor sectors, influencing investor interest in firms closely tied to next-generation computing. At the same time, the evolving tariff situation emerged as a key near-term risk factor for risk assets across the region.
Promotional performance claims referenced in market commentary
Market materials circulating alongside the session noted claims that AI-driven computing developments are reshaping stock performance and cited specific portfolio outcomes. Those materials stated that year-to-date, two out of three global portfolios were outperforming their benchmark indexes, with 88% of selections in the green, and highlighted a flagship technology strategy that reportedly doubled the S&P 500 within 18 months, with named winners noted as examples.
Overall, the trading day illustrated how policy moves in Washington and thin holiday liquidity can combine to produce uneven regional performances, with pockets of strong demand in technology and chip-related equities offset by broader risk aversion tied to tariff uncertainty.