Asian markets rise as tech stocks gain

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.76% as a number of markets hit record highs

Asia markets were sharply higher on Wednesday as tech stocks soared with investors doubling down on what they see as the safest bet on AI, while the yen remained in focus.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.76% as a number of markets hit record highs.

The benchmark Nikkei 225 index added 2.7% to 58,853.87, its highest level ever, with gains led by tech sector related stocks. The broader Topix was up 1.1% at 3,857.15.

KOSPI was up 2.6% and trading well above 6,000 for the first time. The index is up 45% so far this year.

A global memory chip shortage has seen Samsung Electronics and SK Hynix stock prices double since October, as cash has surged up the AI supply chain to the enormously popular chipmakers.

In Hong Kong, the Hang Seng Index was up 0.36% and CSI300 was 0.3% higher.

S&P/ASX200 was 1% higher after earlier reaching a record high despite higher consumer prices in January which increased the risk of more interest rate hikes. Bluechip Australian food retailer Woolworths recorded its biggest one-day gain since 1997, climbing more than 12%, after reporting better than expected first-half results.

A news report said Japanese Prime Minister Sanae Takaichi had conveyed her reservations about further interest rate hikes to Bank of Japan Governor Kazuo Ueda, raising doubts over the next rate hike.

The Japanese government on Wednesday nominated two academics seen by markets as reflationists to join the Bank of Japan’s nine-member board, in appointments seen as a gauge of the Takaichi administration’s thinking on monetary policy.

The appointments, shown in a document presented to parliament, briefly sent the yen down past 156 per dollar and boosted the Tokyo stock market.