Asian markets rebound as semiconductor demand returns to focus

Fidelity

Asian equity markets moved higher as investors returned to semiconductor stocks and looked beyond renewed tensions between the United States and Iran.

South Korea’s KOSPI rose 2.52%, ending four consecutive sessions of losses. Japan’s Nikkei 225 and Australia’s S&P/ASX 200 also gained. The recovery followed a technology-led rise on Wall Street after Micron Technology announced plans to invest more than $250 billion in the United States through 2035.

The move strengthened interest in companies linked to artificial intelligence infrastructure. Demand for advanced memory chips, data centres and computing capacity remains a key support for the sector, although high valuations and sharp price swings continue to increase timing risk.

Samsung Electronics gained in Seoul. SK Hynix slipped slightly as some shareholders took profits before its planned US market debut.

SK Hynix priced its American Depositary Receipts at $149. The offering is expected to raise about $26.5 billion. The company plans to use the proceeds to fund new factories and equipment for AI-related semiconductor production. The size of the deal shows strong demand for exposure to advanced memory technology. A successful US listing could also affect how markets value SK Hynix and other Asian chipmakers, including Samsung Electronics.

Australia’s market was supported by mining and banking shares. BHP posted its strongest daily gain in about a month, while major banks also moved higher. Upcoming results from BHP and Rio Tinto will give the market more information on demand, costs and commodity pricing.

Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.

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