Asian equities advanced on Monday, with Japan’s Nikkei 225 and South Korea’s KOSPI both reaching fresh record highs, driven by continued enthusiasm for artificial intelligence (AI) and robust technology sector performance [1]. The Nikkei 225 climbed to 67,231, while the KOSPI reached 8,874 during Asian trading hours. Hong Kong’s Hang Seng Index also gained 1.04% to trade around 25,450, whereas China’s SSE Composite Index slipped 0.12% to near 4,060 [1].
The rally in Japanese stocks was fueled by domestic firms deepening their integration into the global expansion of AI infrastructure, positioning Japan as a key beneficiary of the worldwide tech surge. Notable gainers included Kioxia Holdings and SoftBank Group [1]. On the economic data front, Japan’s final S&P Global Manufacturing PMI for May 2026 was confirmed at 54.5, slightly down from April’s 55.1 but still indicating expansion. However, corporate capital spending in Japan flatlined in the first quarter, missing market expectations and sharply decelerating from 6.5% year-on-year growth in the final quarter of 2025 [1].
South Korea’s KOSPI was buoyed by a 53% year-on-year surge in total exports to a record $87.8 billion in May, led by a remarkable 169% jump in semiconductor shipments. This reinforced optimism about the sector’s corporate earnings outlook, with Samsung Electronics leading the market advance. Investors are also anticipating Nvidia CEO Jensen Huang’s upcoming visit to South Korea, which has heightened expectations for new AI and semiconductor partnership opportunities [1].
Despite the positive momentum in equities, traders remain cautious due to ongoing geopolitical tensions in the Middle East, as oil prices rise and the US dollar strengthens amid stalled US-Iran ceasefire negotiations. These developments keep energy markets in focus, but overall risk appetite in Asian equities remains robust [1].
CONCLUSION
Asian stock markets surged to new highs, led by record performances in Japan and South Korea, as AI optimism and booming semiconductor exports fueled investor confidence. While geopolitical risks persist, the strong data and sectoral gains suggest continued market resilience in the near term.