Asian equity markets moved higher on Monday, with South Korea's benchmark leading the region after strong performances from major memory chip manufacturers. Hong Kong also recorded solid gains as local technology issues rebounded, while overall participation was limited by public holidays in Japan and Mainland China.
The S&P 500 futures showed little movement in Asian trading hours as investors awaited a heavy calendar of corporate earnings and the upcoming U.S. nonfarm payrolls report. Market participants additionally remained cautious about geopolitical tensions tied to the U.S.-Israel war on Iran, which continued to exert influence on sentiment.
KOSPI rises to record on chip stock strength
South Korea's KOSPI outpaced its regional peers, jumping 3.5% to close at a record 6,828.33. The index's advance was driven primarily by sizable gains at memory chipmakers Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660), which both rallied after reporting robust first-quarter results last week.
SK Hynix led the pair with a 6.8% increase and also reached record highs, while Samsung advanced by 2.8%. Both firms reported strong first-quarter earnings and signaled that ongoing supply shortages in the memory market are likely to support higher prices and revenue levels. The two companies are also identified as key suppliers to large artificial intelligence firms such as Nvidia, a factor supporting demand-side expectations.
Hong Kong posts gains as technology names rebound
Hong Kong's Hang Seng index climbed 1.7%, buoyed by a rebound in local technology stocks. Heavyweights including Baidu Inc (HK:9888), Semiconductor Manufacturing International Corp (HK:0981), and Xiaomi Corp (HK:1810) each rose by more than 4%, providing the largest uplifts to the benchmark.
Baidu recovered some of the ground lost last week, while SMIC benefited from continued optimism about China's AI prospects, which are viewed as particularly positive for the chipmaker. Xiaomi rose after reporting it sold over 30,000 electric vehicles in April, marking a substantial rebound from the prior month.
Wider regional moves and policy-sensitive pockets
Broader Asian markets were generally higher, following the lead from gains on Wall Street last week. Singapore's Straits Times index increased by 0.5%, and futures for India's Nifty 50 were up 0.1% in early trade. By contrast, Australia's ASX 200 underperformed, slipping 0.2% amid rising bets that the Reserve Bank of Australia will lift interest rates by another 25 basis points at its upcoming meeting.
The Australian central bank has already raised rates by a cumulative 50 basis points this year and flagged the possibility of further hikes as it contends with sticky inflation. Energy-related price pressures stemming from the Iran conflict were cited as contributing to the RBA's hawkish outlook.
Market volume in the region was dampened by holidays in Japan and Mainland China, which reduced trading activity even as most markets reacted positively to the prior week's U.S. equity gains. Investors remain attentive to upcoming corporate reports and U.S. economic releases that could recalibrate risk sentiment.