Asian shares moved higher as semiconductor stocks benefited from renewed confidence in artificial intelligence demand, while oil prices and expectations for US interest rates remained key risks for markets.
Technology stocks led the gains across several major Asian markets. South Korea’s KOSPI rose as SK Hynix and Samsung Electronics advanced, while Japan’s Nikkei 225 also gained. Taiwan Semiconductor Manufacturing, Kioxia, TDK, Murata Manufacturing, LG Innotek and Luxshare Precision were among the other technology names supported by stronger sentiment towards the AI supply chain.
The main driver is continued confidence that spending on AI infrastructure will support demand for chips, memory and electronic components. That gives semiconductor producers and suppliers clearer near-term positioning than many other areas of the market, although individual share movements continue to reflect differences in valuation, customer exposure and expected earnings.
Foxconn added to the positive picture after saying it expects third-quarter operations to exceed market expectations. The company pointed to strong AI demand and seasonal information and communications technology sales. August revenue rose 52 per cent from a year earlier to a record T$921.8 billion, marking the second consecutive month above T$900 billion.
Those figures provide further evidence that AI-related investment is feeding through into the wider electronics supply chain. Stronger revenue at a major contract manufacturer also gives the market another measure of how sustained current technology demand may be.
The positive move in technology shares is being offset by uncertainty over US monetary policy. US payrolls increased by 162,000 in August, above expectations. Stronger employment data can support the broader economic outlook, but it can also reduce the likelihood of faster interest-rate cuts from the Federal Reserve.
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