Key facts
- Asian stocks surged, led by chip and AI firms, as investors overlooked escalating U.S.-Iran tensions.
- Japan's Nikkei rose 1.8% and South Korea's KOSPI gained 2.4%.
- SK Hynix and Samsung shares were up 3% in early trading.
- Brent crude futures were on track for their strongest weekly performance since early May.
- The Japanese yen remained near a 40-year low against the U.S. dollar.
- SK Hynix priced its U.S. ADRs at $149, raising approximately $26.5 billion.
Asian stocks surged, led by technology and chip firms, as investors largely overlooked escalating tensions between the U.S. and Iran and potential disruptions to energy supplies through the Strait of Hormuz. Japan's Nikkei gained 1.8% and South Korea's KOSPI rose 2.4%, with chipmakers SK Hynix and Samsung both up 3%. The MSCI's broadest index of Asia-Pacific shares outside Japan added 0.76%.
Investors have shown resilience to the renewed conflict, focusing instead on the AI theme that has driven global stocks to record highs. Overnight, the tech-heavy Nasdaq closed higher following Micron Technology's announcement of significant U.S. investment plans, which boosted chip stocks, including a 3% rise in the Philadelphia SE Semiconductor index.
SK Hynix is set to make its U.S. market debut with its American Depositary Receipts priced at $149, raising approximately $26.5 billion. This offering aims to finance new factories and equipment to meet surging AI chip demand. The company's Korean shares have seen a substantial year-to-date increase of 238%, contributing to the KOSPI's performance.
In currency markets, the Japanese yen hovered near a 40-year low against the U.S. dollar, with traders watching for potential intervention from Tokyo. The dollar was largely muted as markets awaited catalysts for U.S. interest rate direction. In commodities, gold was on track for a weekly decline.