Asian financial markets launched 2026 with substantial gains, propelled by sustained optimism surrounding artificial intelligence infrastructure demands. South Korea’s benchmark Kospi index closed Friday at an unprecedented peak of 4,309.63, marking a 2.3% surge. This performance was largely driven by semiconductor giants Samsung Electronics and SK Hynix, which soared 7.2% and 4% respectively, reflecting investor confidence in AI-related chip manufacturing.
Hong Kong’s Hang Seng index demonstrated remarkable strength with a 2.6% advance to 26,283.53, powered by robust technology sector performance. E-commerce leader Alibaba climbed 3.7%, while Baidu—developer of the Ernie chatbot—jumped 9.5% following its announcement to spin off its AI chip unit Kunlunxin for a potential Hong Kong listing in early 2027, pending regulatory approvals.
Regional markets showed broad positivity with Australia’s S&P/ASX 200 edging 0.2% higher to 8,727.30, Taiwan’s Taiex gaining 1.3%, and India’s Sensex adding 0.6%. Trading remained suspended in Tokyo, Shanghai, Bangkok, and Wellington markets.
This bullish opening continues 2025’s exceptional performance where the S&P 500 achieved 39 record highs with a 16.4% annual gain, while the Nasdaq and Dow Jones posted advances of 20.4% and 13% respectively. Market analysts attribute this sustained growth to AI-driven profit expectations, Federal Reserve interest rate reductions, and stabilized trade policies.
Commodity markets mirrored equity enthusiasm with silver rebounding 4% after a previous session decline, having gained over 140% throughout 2025. Gold advanced 1% following its 63.7% annual increase, while U.S. benchmark crude oil rose to $57.88 per barrel amid broader market optimism.