Asian stock markets rise, with Japan and South Korea hitting record highs; tech stocks strengthen ahead of Nvidia's earnings report

Investing.com - On Wednesday, most Asian stock markets rose, with Japan and South Korea reaching new all-time highs driven by technology stocks.

The Australian stock market also hit a record high, with strong earnings from heavyweight Woolworths helping the market overcome the impact of higher-than-expected inflation data in January.

Chinese stocks made a strong comeback after the Lunar New Year holiday on Tuesday, continuing to extend gains on Wednesday, while the Hong Kong market benefited from a rebound in tech stocks.

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Asian markets received positive signals from Wall Street’s overnight trading, with investors questioning how much impact artificial intelligence will have on the software sector. As of 22:14 Eastern Time (03:14 Beijing Time), S&P 500 futures rose 0.1%, with market focus on Nvidia’s upcoming earnings report, a key AI indicator.

U.S. President Donald Trump’s State of the Union address had limited direct impact on Asian markets, but trade tariffs remain an uncertain factor.

Trump claimed that even if the Supreme Court overturns most of his tariffs, he will push forward with his tariff agenda without Congressional approval.

Japan and South Korea hit record highs, tech stocks rise ahead of Nvidia earnings

Japan’s Nikkei 225 surged nearly 2%, reaching a record high of 58,319.0 points, while South Korea’s KOSPI jumped over 2%, hitting a record high of 6,122.98 points.

Both indices benefited from strong performance in tech stocks, with the Nikkei also supported by export-oriented sectors, and a weaker yen providing additional help.

In South Korea, Hyundai Motor (KS:005380) soared up to 10%, approaching its all-time high, after Reuters reported the company plans to invest billions of dollars in Korea.

Memory chip giants Samsung Electronics (KS:005930) and SK Hynix (KS:000660) both rose about 2%, reaching new highs ahead of Nvidia’s highly anticipated earnings report.

This global top-market-cap company is set to announce strong profit growth after the U.S. market closes on Wednesday, with market focus on whether it will continue to signal robust demand driven by AI.

In recent weeks, concerns over AI-related disruptions have been a major drag on global stock markets, with Asian markets—especially Hong Kong—experiencing significant declines.

On Wednesday, Hong Kong’s Hang Seng Index rose 0.8%, with local tech stocks recovering some recent losses.

Australia hits record high amid high inflation data

The Australian ASX 200 index also reached a record high on Wednesday, climbing over 1% to a peak of 9,130.30 points.

The index was buoyed by a rally in retail giant Woolworths Ltd (ASX:WOW), which reported strong half-year earnings and indicated a good start to the current half.

Strong gains in major mining stocks also benefited the ASX, with BHP (ASX:BHP), Rio Tinto Ltd (ASX:RIO), and Fortescue Metals Group Ltd (ASX:FMG) rising between 1.8% and 2.7%. Fortescue led gains after reporting strong half-year results.

The Australian stock market largely overcame the impact of higher-than-expected consumer price index inflation data in January, which showed core inflation rising further above the Reserve Bank of Australia’s target range.

This data provided additional impetus for the RBA to consider further rate hikes this month.

ANZ Bank analysts said CPI data increased the risk of a rate hike in May—an outlook that is unfavorable for the local stock market.

In other Asian markets, China’s CSI 300 and Shanghai Composite indexes both rose 1.2%, continuing to extend gains after strong trading on Tuesday. The local markets rebounded strongly after the Lunar New Year holiday, boosted by the U.S. trade tariff reductions and increased consumer spending during the holiday period.

India’s Nifty 50 index rose 0.6% in early trading, with local software stocks rebounding from recent declines.

Singapore’s Straits Times Index fell 0.1%.

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