Asian Stocks Advance as Tech Optimism Builds – Asia Market Wrap
Stocks rallied in Asia with tech shares leading gains as concern about the valuations of artificial intelligence firms eased. Samsung Electronics Co. shares surged to a fresh record.
The MSCI Asia Pacific Index added 0.4%, with South Korea’s Kospi climbing to a fresh record high. The move followed gains on Wall Street, where the S&P 500 rose 0.6% and the Nasdaq 100 advanced 0.8% on Wednesday. The Australian dollar strengthened after solid employment figures, while oil prices steadied following their largest single-day jump since October.
The recovery in technology shares signaled that worries about AI-related disruption were beginning to fade, as several investors pointed to potential buying opportunities. Sentiment was also supported by reports that OpenAI is nearing completion of the first stage of a new fundraising round that could exceed $100 billion.
The regional MSCI benchmark has risen roughly 12% this year, led by a surge of more than 30% in the Kospi. By comparison, US equities have moved largely sideways, with the S&P 500 little changed since late December.
Samsung Electronics rallied after local media said the company is in talks to set a price for its newest AI-focused memory chip that may be as much as 30% higher than the prior version. The shares gained up to 5.4% as trading resumed on the Korea Exchange following a three-day break.
Optimism surrounding OpenAI further lifted market mood. The creator of ChatGPT could command a valuation above $850 billion once the latest financing is included, according to people familiar with the matter.
Markets in mainland China, Hong Kong and Taiwan remained closed for the Lunar New Year holiday.
The Australian dollar climbed against all major counterparts after data showed the jobless rate held at 4.1%, defying expectations for a rise to 4.2%. The currency gained as much as 0.4% to 70.71 US cents.
Gold was little changed, hovering near $4,970 an ounce after bargain-hunters stepped in during the prior session following a two-day slide.
In Japan, demand for a 20-year government bond auction came in below its 12-month average, as falling yields after Prime Minister Sanae Takaichi’s election win reduced investor appetite.
