Most equity markets across Asia posted gains on Thursday, with South Korea leading the region as semiconductor names pushed the KOSPI to a fresh record. Japan registered a milestone when the Nikkei 225 climbed above 58,000 points earlier in the session before trimming gains, while broader regional indices displayed a mixed performance as US labour data reshaped Fed expectations.
Seoul: KOSPI at new high on chip optimism
In Seoul, the KOSPI surged nearly 3% to an all-time high of 5,515.8, extending a rally underpinned by demand tied to artificial intelligence applications. Samsung Electronics (KS:005930) led the advance, jumping more than 6% to record highs after a senior executive highlighted the company’s competitive position in next-generation HBM4 high-bandwidth memory chips. That commentary renewed investor confidence in Samsung’s technology roadmap and its ability to compete in advanced AI memory solutions.
Market participants have increasingly viewed HBM4 as a potential underpinning for the next phase of AI hardware investment, a dynamic seen as supportive of supplier margins and earnings visibility. SK Hynix Inc (KS:000660) also rose, gaining about 3.5% on expectations of continued demand for premium memory chips destined for AI server applications.
Tokyo: Nikkei tops historical threshold amid political tailwinds
In Japan, the Nikkei 225 moved above 58,000 points for the first time during the day, marking a record peak before paring back to trade largely unchanged later. The TOPIX index advanced 1.5% to an all-time high of 3,888.94 points.
Observers attribute part of the rally to the so-called "Takaichi trade" after Prime Minister Sanae Takaichi’s election victory. Investors welcomed her pro-growth policy stance, which includes measures aimed at supporting domestic industry, boosting defence spending, and maintaining accommodative financial conditions. Those policies are viewed as favorable for exporters and cyclical stocks, contributing to demand for Japanese equities.
US jobs data cools hopes for quick Fed cuts
Gains across the Asia-Pacific region were, however, constrained by US labour market strength. Data released on Wednesday showed US nonfarm payrolls in January increased by 130,000 jobs, exceeding economists’ expectations, while the unemployment rate unexpectedly fell to 4.3% from 4.4%. The report reduced some fears of a near-term economic slowdown but also dampened market expectations for imminent Federal Reserve rate cuts.
On Wall Street, major indexes closed largely flat overnight and futures tied to those benchmarks were little changed in Asian trading hours, reflecting investor caution as markets digest the implications of the stronger jobs figures.
Regional divergence elsewhere
Elsewhere in the Asia-Pacific, Australia’s S&P/ASX 200 rose 0.5%, and Singapore’s FTSE Straits Times index gained 0.7%. Mainland China’s blue-chip Shanghai Shenzhen CSI 300 index and the Shanghai Composite index were largely muted. Hong Kong bucked regional advances as the Hang Seng index slipped by more than 1%. Futures for India’s Nifty 50 ticked up 0.1%.
Overall, the session underscored the influence of sector-specific demand drivers - notably semiconductor exposure to AI compute - and political policy expectations on equity performance, while macroeconomic data from the US continued to play an outsized role in shaping near-term rate expectations and regional market momentum.
Key context and takeaways
- Semiconductor stocks were a primary driver of the KOSPI record, led by Samsung Electronics and SK Hynix on AI-related memory demand.
- Japan’s market highs reflected investor appetite for policies perceived as pro-growth and supportive of cyclical and export-oriented companies.
- Robust US payroll growth and a lower unemployment rate limited regional upside by lowering the probability of near-term Federal Reserve easing.