Many Asian stocks remained relatively stable on Tuesday, following a moderate performance on Wall Street. Investors awaited key economic data expected later in the week, keeping market sentiment cautious.
However, South Korean stocks stood out from the rest, posting significant gains fueled by optimism surrounding artificial intelligence (AI) technology.
While regional markets mirrored a slight downturn on Wall Street, concerns over inflation and Federal Reserve policy, coupled with lofty valuations, kept U.S. stocks in a holding pattern. Nevertheless, U.S. stock index futures saw slight gains during Asian trading hours.
South Korea's KOSPI index surged 1.3% to reach its highest level in over two years, driven by strong performances from major chipmakers. SK Hynix Inc saw a remarkable 5.2% increase, hitting a record high, as investors remained bullish on its AI industry exposure.
This optimism was further fueled by Micron Technology Inc's gains in the U.S., with expectations of robust demand for advanced memory chips, particularly high-bandwidth memory chips used in AI development. Samsung Electronics Co Ltd also saw a notable increase of 1.9%.
In contrast, most other Asian markets showed limited movement, with Japan's Nikkei 225 slipping slightly and Australia's ASX 200 edging down amid concerns over inflation and weakening consumer sentiment.
Chinese markets remained subdued, while Hong Kong's Hang Seng index saw modest gains supported by tech stocks. However, concerns persisted over China's economic growth slowdown, dampening enthusiasm for Chinese stocks.
Indian markets were poised for a mildly positive start, with futures indicating potential gains following an extended weekend.
Paraphrasing text from "Investing" all rights reserved by the original author.
