Asian Stocks Rally as AI Optimism Lifts Tech Shares Across Regional Markets

Asian stock markets climbed sharply on Wednesday as renewed optimism surrounding artificial intelligence (AI) boosted technology shares following easing oil prices, lower U.S. Treasury yields, and another round of strong corporate earnings from Wall Street.

Investor sentiment improved after the S&P 500 closed at another record high, driven by AI-related gains. Nvidia advanced more than 2% after Elon Musk praised the company’s chips for supporting SpaceX’s computing plans. U.S. futures also pointed higher during Asian trading, with Nasdaq 100 Futures rising 0.3% and S&P 500 Futures adding 0.1%.

However, the AI rally was not universal. Advanced Micro Devices (AMD) fell about 9% after issuing weaker-than-expected guidance, while SpaceX declined roughly 7.5% in extended trading following its first quarterly earnings report as a public company, which highlighted higher AI infrastructure spending.

Technology and semiconductor stocks led gains across Asia. Japan’s Nikkei 225 surged around 3%, while the TOPIX also climbed nearly 3%. Shares of Murata Manufacturing, LARGAN Precision, Kioxia, and TDK posted strong advances as investors returned to chip-related names.

South Korea’s KOSPI jumped more than 3%, recovering from earlier losses. SK Hynix gained over 6%, and Samsung Electronics rose nearly 4%, supported by improving AI demand expectations.

Chinese equities also rebounded, with the CSI 300 rising around 2% and the Shanghai Composite adding about 1%. Foxconn Industrial Internet, NAURA Technology, Cambricon Technologies, and BOE Technology recorded solid gains. Hong Kong’s Hang Seng Index advanced roughly 1.6%, led by Alibaba after the launch of its new Qwen3.8-Max AI model, while Tencent and Baidu also moved higher despite reports of potential new U.S. restrictions on Chinese AI-related optical transceiver imports.

Australia’s S&P/ASX 200 reached another record high, supported by mining and financial stocks. Market analysts noted continued inflows from investors seeking relatively defensive exposure amid volatility in regional technology markets. Meanwhile, weaker oil prices pressured energy producers as optimism grew over a possible U.S.-Iran agreement affecting the Strait of Hormuz.

Investors are now focused on the Reserve Bank of India’s policy decision, along with upcoming U.S. ADP employment data and Friday’s nonfarm payrolls report, which could influence expectations for the Federal Reserve’s next interest rate move.