New Delhi, Sep 7: Asian markets began the week on a strong footing, with technology and semiconductor stocks driving sharp gains in South Korea and Japan. Investor optimism over continued spending on artificial intelligence and strong demand for advanced chips lifted sentiment across the region.
South Korea’s KOSPI jumped 4.61 per cent to 6,995.40, moving close to the psychologically important 7,000 level. Japan’s Nikkei 225 gained 2.12 per cent, crossing 66,000 as investors stepped up buying in major technology companies.
Chipmakers were at the centre of the rally. Samsung Electronics and SK Hynix recorded strong gains in Seoul, while Japanese technology and semiconductor-linked stocks also advanced. The moves reflect continued investor confidence that rising AI investment will support demand for high-performance chips and data-centre equipment.
The rally was also supported by stronger-than-expected US employment data, which eased immediate concerns about a sharp slowdown in the world’s largest economy. At the same time, the data has raised expectations that US interest rates could remain higher for longer, creating a potential challenge for equity markets.
The strong performance of semiconductor stocks is particularly important for South Korea and Japan, where technology companies have a significant influence on market sentiment. Continued investment in AI infrastructure could provide further support to chipmakers if demand remains strong.
However, investors are also keeping a close watch on rising crude oil prices. Brent crude moved above $97 a barrel amid heightened tensions in the Gulf and concerns over possible disruptions around the Strait of Hormuz. Higher energy costs could increase inflationary pressure and make it more difficult for central banks to cut interest rates.
Markets are now looking ahead to US inflation data due later this week, along with upcoming policy decisions from the Federal Reserve and Bank of Japan. These developments are likely to determine whether the current technology-led rally can continue.
For now, strong AI demand, better economic expectations and renewed interest in semiconductor stocks are keeping Asian equities supported. However, elevated oil prices, interest-rate uncertainty and geopolitical tensions remain key risks for investors.