Stock markets across Asia have surged to record levels, extending a global equity rally that has persisted despite continued economic disruption linked to the war in Iran.
Benchmarks in South Korea, Taiwan and Japan have all posted strong gains in the latest trading sessions, with technology and semiconductor companies leading the advance. The momentum has come even as Asian economies remain exposed to higher oil prices and disruption to shipping routes in the Strait of Hormuz, a key passage for global crude exports.
Japan's Nikkei 225, South Korea's Kospi and Taiwan's Taiex have all reached new highs, tracking a broader global rally that has also pushed U.S. indexes such as the S&P 500 and Nasdaq Composite to record territory, according to Reuters.
The rally has been heavily concentrated in artificial intelligence-related industries, particularly semiconductor manufacturers that supply chips used in AI data centers and advanced computing systems. South Korea's Kospi has been one of the strongest performers globally, driven by gains in chipmakers including Samsung Electronics and SK Hynix, according to Reuters.
Semiconductor demand tied to AI infrastructure has offset concerns about energy costs and geopolitical uncertainty. Analysts cited by Reuters said the global AI investment cycle has remained a central driver of equity inflows across Asia, particularly in economies with strong chip manufacturing bases such as South Korea and Taiwan.
South Korea's benchmark index has repeatedly set new records this year, supported by heavy foreign investment into memory chip producers. Samsung Electronics recently crossed the $1 trillion market capitalization threshold, placing it among a small group of global technology giants.
Taiwan's market has followed a similar trajectory, with Taiwan Semiconductor Manufacturing Company remaining central to global semiconductor supply chains. The company produces advanced chips used by major U.S. technology firms, particularly in AI computing infrastructure.
Japan's market has also benefited from exposure to semiconductor and technology stocks, which now represent a significant share of the Nikkei 225 index. Data cited by Reuters indicates that AI-related companies account for a large portion of Japan's benchmark index weighting, amplifying the impact of global technology demand on domestic equities.
The market gains have come during a period of sustained geopolitical tension linked to the Iran conflict, which has disrupted oil flows and contributed to volatility in energy markets. Earlier disruptions around the Strait of Hormuz briefly raised concerns about global supply constraints, though equity markets have largely continued to focus on technology sector performance.
Oil price fluctuations tied to Middle East tensions have added inflationary pressure to import-dependent economies in Asia. However, investors have continued to prioritize earnings growth in technology sectors over macroeconomic headwinds.
The divergence between regions has become more visible in recent months. While Asian markets have set new highs, European equities have lagged, weighed down by weaker exposure to AI-driven growth sectors and continued energy dependency concerns.
The latest moves underscore how equity performance has become increasingly concentrated in technology-linked sectors, even as geopolitical risks tied to the Iran conflict and global energy supply chains remain unresolved in the broader macro environment.
