Asian Shares Surge Powered By Tech Rebound

Asian stocks followed Wall Street higher on Wednesday, with Japanese and South Korean shares rallying to record highs on strength in technology stocks.

Investors also reacted to U.S. President Donald Trump’s comments in his annual address before a joint session of Congress that most of the U.S. trading partners “want to keep the deal that they already made” with his administration and that tariffs will replace income tax as time goes by.

The dollar was broadly lower in Asian trading, helping gold prices surge toward $5,200 an ounce. Oil edged higher to hover near seven-month highs on concerns over a potential military conflict between the United States and Iran.

China’s Shanghai Composite Index climbed 0.7 percent to 4,147.23 as Shanghai eased homebuying rules in the latest attempt by authorities to contain the nation’s prolonged property slump. Hong Kong’ Hang Seng Index rose 0.7 percent to 26,765.72.

Japanese markets hit a new record high, longer-term bonds continued to climb, and the yen gyrated against the dollar after Prime Minister Sanae Takaichi’s government nominated two new dovish-leaning academics to the Bank of Japan’s nine-member board, prompting traders to pare expectations of a near-term rate hike.

The Nikkei 225 Index jumped 2.2 percent to 58,583.12, led by strong chip and AI names. The broader Topix Index closed 0.7 percent higher at 3,843.16.

Nippon Steel shares plunged 5.5 percent after the company raised ¥600 billion ($3.9 billion) from an upsize sale of convertible bonds.

Seoul stocks surged to a new record high amid easing concerns about the disruptive effects of artificial intelligence and ahead of key earnings from Nvidia due later in the day. The Kospi surged 1.9 percent to 6,083.86, extending gains for a fifth consecutive session.

Tech and auto stocks led the rally after AI startup Anthropic PBC emphasized partnerships with companies, adding its Claude chatbot technology will integrate with, rather than displace, existing businesses.

Hyundai Motor spiked 9.2 percent on news of a possible initial public offering of its U.S. affiliate Boston Dynamics, known for its humanoid robot Atlas. Its affiliate Kia Corp. skyrocketed 12.7 percent.

Australian shares hit a record high, even as stronger-than-expected inflation data stoked speculation of more rate hikes.

The benchmark S&P/ASX 200 Index closed 1.2 percent higher at 9,128.30, after having touched a record high of 9,130.30 points earlier. The broader All Ordinaries Index gained 1.2 percent to close at 9,359.

Woolworths shares soared 13 percent to a 17-month high after the grocer reported a strong half-year profit and raised its full-year guidance.

WiseTech Global jumped over 11 percent after the software logistics firm announced a sweeping AI overhaul, with plans to lay off about 2,000 people over the next two years.

Across the Tasman, New Zealand’s benchmark S&P/NZX 50 Index finished marginally lower at 13,525.58 after a choppy session.

U.S. stocks bounced back overnight as tech stocks rebounded from recent losses and a survey showed consumer sentiment picked up in February.

Trump’s imposition of a 10 percent global tariffs under a different legal framework, rather than the 15 percent tariffs announced earlier, also helped spur some relief over his trade agenda.

The tech-heavy Nasdaq Composite surged 1 percent as AMD announced a major supply deal with Meta. The Dow and the S&P 500 both added around 0.8 percent after suffering heavy losses in the previous session.

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