Asian markets advanced on Monday as investor enthusiasm for artificial intelligence and semiconductor stocks continued to power regional equities higher, despite renewed geopolitical tensions in the Middle East, which lifted oil prices.
The rally was led by technology-focused markets, with Japan’s Nikkei 225 gaining 0.9% after reaching fresh record highs last week. South Korea’s market surged 4.2%, building on an 8% advance the previous week, while Taiwan’s technology-heavy exchange continued its strong run amid robust demand for AI-related hardware.
MSCI’s broad Asia-Pacific index excluding Japan rose 1.6%, supported by continued optimism surrounding artificial intelligence infrastructure spending and semiconductor demand.
Shares in Samsung Electronics jumped nearly 10% after the company announced it had begun shipping samples of its latest high-bandwidth memory (HBM) chips, a critical component in AI servers and advanced computing systems.
The strength of the AI-driven investment cycle was further highlighted by South Korea’s trade data, which showed exports rose at their fastest annual pace in more than 40 years during May, reaching a record US$87.8 billion. Semiconductor exports remained a key driver of growth.
Attention is also focused on Taiwan’s Computex technology exhibition, where Nvidia chief executive Jensen Huang is expected to outline the company’s latest AI developments and reinforce Taiwan’s central role within the global semiconductor supply chain.
However, gains were tempered by renewed tensions in the Middle East. Oil prices rose after reports of fresh military exchanges between the US and Iran over the weekend, alongside continuing regional instability involving Iranian-backed groups.
Brent crude climbed 2.8% to around US$93 a barrel, while US benchmark West Texas Intermediate gained 3.1% to trade above US$90, reversing some of the recent declines driven by hopes of a diplomatic breakthrough.
Investors remain closely focused on negotiations between Washington and Tehran, although uncertainty persists after US President Donald Trump offered little detail on progress beyond urging markets to “just sit back and relax”.
Meanwhile, Chinese equities lagged regional peers, with blue-chip stocks slipping 0.2% as economic concerns persisted following data showing factory activity stalled in May, reinforcing concerns about the pace of China’s recovery.
