Asia Stocks Rise on AI Chip Rally, US-Iran Peace Hopes
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- KOSPI jumped more than 3%, surpassing the 6,100 mark intraday and approaching record highs, as SK Hynix hit a fresh record and Samsung Electronics climbed on AI-driven memory chip demand expectations.
- Nikkei 225 advanced around 1% near record levels, with Japan's broader TOPIX edging 0.3% higher.
- Hang Seng jumped over 1% and the Shanghai Composite rose 0.4%, while Singapore's Straits Times added 0.4% and Australia's ASX 200 edged up 0.2%.
- S&P 500 climbed 1.2% in the prior session to finish just shy of an all-time high, and the Nasdaq surged nearly 2% on continued tech strength — providing the cue for Asia's rally.
- US-Iran diplomatic signals from Washington that talks with Tehran could resume lifted risk sentiment, even as a US naval blockade of ships leaving Iranian ports remained in effect and Tehran threatened retaliation against ports in neighboring Gulf states after weekend talks collapsed.
- Oil prices declined on peace hopes, easing inflationary pressure, while softer-than-expected US producer price data reinforced expectations that pipeline inflation pressures are moderating.
- Market participants also looked ahead to major US bank earnings as the next major catalyst.
Why it matters: KOSPI's 3% surge past 6,100 and SK Hynix's record close show that AI memory-chip demand is the actual engine of the regional rally, not the geopolitics. The 'peace hopes' narrative sits uneasily beside a live US naval blockade and Iranian threats against Gulf ports — leaving the equity bid vulnerable if diplomacy collapses or oil reverses on any escalation in the Strait.
