Asian Stocks Rise as Wall Street Rebound and Greenland Tensions Ease, South Korea Hits Record High

Asian stock markets mostly advanced on Thursday, following a strong overnight rebound on Wall Street as investors welcomed easing geopolitical tensions surrounding U.S. demands over Greenland. Improved global risk sentiment helped lift regional equities, with South Korean stocks leading gains and reaching a record high, while Japanese markets rebounded sharply ahead of a closely watched Bank of Japan policy decision.

Markets across Asia tracked positive momentum from U.S. equities after President Donald Trump indicated he would not move forward with tariffs on Europe tied to Greenland and confirmed that a framework agreement had been reached regarding the Danish territory. This development eased fears of escalating trade and diplomatic conflict, helping investors shift focus back to economic fundamentals and corporate performance.

South Korea’s KOSPI emerged as the top performer, surging more than 2% to a historic high above 5,000 points. Gains were driven largely by chipmakers and automakers, as optimism grew around artificial intelligence, robotics, and advanced manufacturing. Samsung Electronics and SK Hynix climbed strongly amid reports of potential production cuts aimed at supporting memory chip prices and profit margins. Hyundai Motor also extended its rally, hitting a record high on confidence in its physical AI and robotics initiatives. These gains came despite weaker-than-expected fourth-quarter GDP data, with analysts forecasting an economic recovery supported by tech exports and improving domestic consumption.

Japan’s Nikkei 225 rose nearly 2%, while the TOPIX added around 1%, recovering much of this week’s earlier losses. Banking stocks advanced as concerns over Japan’s fiscal health eased, while government bond yields retreated from multi-decade highs. Investor attention is now firmly on the Bank of Japan’s two-day meeting, with expectations that interest rates will remain unchanged as policymakers await clearer signals on economic momentum.

Elsewhere, Australia’s ASX 200 gained on strength in mining stocks, Singapore equities edged higher, and Indian stock futures showed modest gains after recent volatility. Chinese markets underperformed, trading mostly flat, while Hong Kong’s Hang Seng slipped slightly. Overall, Asian stocks benefited from improved global sentiment, easing geopolitical risks, and optimism around technology-led growth, supporting a broadly positive outlook for regional markets.