Summary
Most Asian shares rose on Monday, with technology names outperforming as market participants leaned into optimism about artificial intelligence. The region’s standout was South Korea, where the KOSPI surged to a record, bolstered by strong performances from major memory-chip and electronics companies that have exposure to AI-related demand. These moves came even as negotiations between the U.S. and Iran continued without a definitive agreement announced.
Markets and drivers
Regional bourses took encouragement from Wall Street, which closed at record highs on Friday amid strength in technology stocks. That momentum, combined with a string of reports pointing to continued U.S.-Iran negotiations but no clear deal, left investors focused on tech-led upside rather than geopolitical risk.
Adding to the backdrop, a mildly softer-than-expected U.S. inflation reading supported some hopes that the economic fallout from the Iran war may be less severe than feared, a dynamic that also helped sentiment toward risk assets.
KOSPI’s record run
South Korea’s KOSPI was a major outperformer, surging nearly 5% to reach a record high of 8,874.16 points. The advance was led by technology-related names.
Memory-chip leaders Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660) both climbed nearly 10% to record highs, while LG Electronics Inc (KS:066570) jumped nearly 30%. Reports that NVIDIA Corporation (NASDAQ:NVDA) Chief Executive Jensen Huang will meet with major South Korean technology executives during a visit later in the week helped lift the stocks, as did NVIDIA’s plan to hold an event on the sidelines of the COMPUTEX trade show in Taipei on Monday that will involve major South Korean executives.
Market attention to potential strengthened ties — and the ongoing optimism around AI-driven demand for chips and server infrastructure — helped underpin the local rally in semiconductor and electronics shares.
Japan and other Asian markets
Japan’s Nikkei 225 rose about 1%, led by technology names. SoftBank Group Corp. (TYO:9984) was among the top performers on the index, rallying more than 10% to a record high. The strong performance pushed SoftBank ahead of Toyota Motor Corp (TYO:7203) to become Japan’s most valuable company, reflecting market enthusiasm for the conglomerate’s AI exposure, including its ties to OpenAI.
Other Japanese technology and AI-related stocks also posted gains: Murata Mfg Co (TYO:6981) rose 14% and Kioxia Holdings Corp (TYO:285A) advanced 11%.
Hong Kong’s Hang Seng index rose 0.5%, also supported by strength in technology shares. By contrast, mainland Chinese markets were softer: the Shanghai Shenzhen CSI 300 fell 1% and the Shanghai Composite declined 0.4%. Purchasing managers index readings released over the weekend showed some cooling in manufacturing growth in May, adding to uncertainty about the near-term trajectory for China’s economy and its markets.
Elsewhere in the region, Australia’s S&P/ASX 200 slipped 0.1%, Singapore’s Straits Times index was unchanged, and futures for India’s Nifty 50 were down about 0.2%.
What this means for sectors
The session highlighted the sensitivity of technology and semiconductor stocks to AI-related newsflow and potential corporate tie-ups or executive engagement. Electronics makers and chip suppliers with exposure to AI demand saw pronounced gains, while markets more closely tied to manufacturing growth in China showed weakness amid softer PMI data.
Outlook and context
While technology strength and speculation over executive-level meetings provided a clear near-term catalyst for several Asian markets, broader regional performance remained mixed. Investors continue to weigh AI-driven demand expectations against geopolitical negotiations and economic indicators that point to uneven activity in major economies.