On April 22, stocks in Tokyo and Seoul surged to record highs, driven primarily by investor enthusiasm for artificial intelligence (AI)-related companies, despite ongoing geopolitical uncertainty in the Middle East involving the United States and Iran over the Strait of Hormuz [1]. The Nikkei Stock Average reached an all-time intraday high, with SoftBank Group leading gains on renewed optimism about its AI investments [1]. Similarly, Seoul's market closed at a record high, buoyed by strong performance in the technology sector, particularly AI and semiconductor stocks [1].
Market participants attributed the rally to robust capital flows into AI and technology shares, as well as improved investor sentiment that outweighed concerns about the lack of progress in U.S.-Iran talks [1]. Analysts highlighted that expectations for increased capital spending in artificial intelligence continue to underpin equity valuations in both Japan and South Korea [1].
Technical indicators for the Nikkei and Korea Composite Stock Price Index (KOSPI) showed strong momentum, with both indices breaking through previous resistance levels to set new records [1]. Traders and analysts expressed a positive outlook for the markets, noting continued support at current price levels and the ongoing appeal of technology and innovation themes [1].
CONCLUSION
The rally in Tokyo and Seoul underscores the market's focus on AI-driven growth, with investors largely disregarding geopolitical risks in favor of technology sector optimism. Both the Nikkei and KOSPI set new records, supported by strong capital flows and positive sentiment toward AI and semiconductor stocks. Analysts remain upbeat about the market's near-term prospects.