Asian shares rose after softer US inflation data reduced concerns that the Federal Reserve could raise interest rates again soon.
South Korea led the gains, with the Kospi closing 6.2% higher in its strongest session for more than five weeks. The move was driven by large semiconductor stocks, particularly SK Hynix and Samsung Electronics, which together represent more than half of the index.
SK Hynix rose 8.8%, while Samsung Electronics gained 6.3%. Both companies benefited from stronger demand for semiconductor shares linked to artificial intelligence, data centres and advanced memory chips. Gains in US-listed technology companies, including Nvidia and Micron Technology, also supported sentiment before trading opened in Seoul.
The main market driver was the shift in interest-rate expectations. Softer US inflation reduced the likelihood of an immediate Federal Reserve rate increase, pushing the dollar and Treasury yields lower. This created a more supportive backdrop for technology companies, which are often more sensitive to changes in borrowing costs and valuation assumptions.
The strength of the South Korean market also reflects its heavy exposure to the semiconductor sector. That concentration can increase upside when chip demand improves, but it can also raise risk if earnings expectations weaken or foreign investors reduce exposure.
Other Asian markets also moved higher. Taiwan’s benchmark rose 2%, supported by a gain in Taiwan Semiconductor Manufacturing Company. Singapore’s market advanced by as much as 1.2%, helped by banking shares, and reached another record high. Indonesian equities also extended their recent gains.
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