Most Asian stock markets moved higher on Monday, led by gains in technology shares that followed a strong performance by U.S. peers, although overall advances remained limited due to rising geopolitical and macroeconomic risks. Trading activity across the region was relatively muted, partly because Japanese markets were closed for a public holiday, resulting in lower regional volumes.
Technology stocks emerged as the top performers, supported by sustained optimism around artificial intelligence and ongoing demand for semiconductors. The AI-driven rally had already lifted Wall Street at the end of last week, setting a positive tone for Asian markets. However, sentiment was tempered after S&P 500 futures slipped 0.5% late Monday following reports of a U.S. government probe into the Federal Reserve. Fed Chair Jerome Powell described the investigation as politically motivated, raising concerns about the central bank’s independence and adding pressure to global risk appetite.
Geopolitical tensions also weighed on investor confidence. Ongoing protests in Iran, a reported U.S. incursion in Venezuela, escalating diplomatic friction between China and Japan, and renewed discussions in Washington about acquiring Greenland all contributed to a cautious market environment, despite a generally positive start to the year for Asian equities.
South Korea’s KOSPI led regional gains, rising 1.2% as chipmakers and technology stocks advanced. Hong Kong’s Hang Seng Index added 0.3%, supported by tech shares, while mainland China’s CSI 300 and Shanghai Composite indexes also edged higher. In Hong Kong, newly listed artificial intelligence companies saw strong gains, with Knowledge Atlas Tech surging 25% and MiniMax Group jumping more than 20%. Chipmaker Shanghai Iluvatar CoreX SemiCon also posted modest gains.
Elsewhere, Taiwan Semiconductor Manufacturing Company’s shares rose 1.4% after reporting strong year-on-year growth in December sales. Positive sentiment was further supported by NVIDIA’s recent chip announcements and upbeat commentary at the CES trade show. Still, Asian markets entered 2026 on a cautious note, as investors remained wary of stretched tech valuations and persistent global geopolitical risks.


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