Asian stock markets opened the new year on a positive note on Friday, with technology and semiconductor stocks leading gains across the region, despite subdued trading volumes caused by holiday closures in major markets. Investor sentiment was supported by renewed optimism around artificial intelligence, data centres, and advanced chip demand, which carried momentum from the end of last year into early 2026.
Hong Kong stocks led regional performance, with the Hang Seng Index jumping around 2% as technology and internet companies rallied strongly. The index ended 2025 with annual gains of more than 27%, underpinned by robust performances from Chinese tech firms and growing investor confidence in China’s push for self-reliance in semiconductor manufacturing. Continued investment in artificial intelligence and advanced computing has helped sustain interest in the sector despite broader economic uncertainties.
South Korea’s stock market also posted solid gains, with the KOSPI rising about 1.3%. Shares of major chipmakers Samsung Electronics and SK Hynix climbed between 2.5% and 4%, reflecting strong global demand for semiconductors used in artificial intelligence, data centres, and high-performance computing. The KOSPI was one of the world’s best-performing major indices in 2025, surging more than 75% over the year, largely driven by the global AI boom and South Korea’s dominance in memory chip production.
Elsewhere in Asia, trading activity remained light as Japan and mainland China stayed closed for public holidays. Australia’s S&P/ASX 200 edged up 0.2%, while Singapore’s Straits Times Index gained around 0.4%, supported by modest buying in blue-chip stocks. Futures linked to India’s Nifty 50 also pointed to a firmer open, rising approximately 0.2%.
Globally, technology stocks regained momentum toward the end of 2025 as optimism around artificial intelligence investment intensified. Strong gains in U.S. tech shares in late December helped lift Asian market sentiment, reinforcing expectations that AI-related sectors will remain a key driver of equity market performance in 2026.


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