Asian markets rise on cooling U.S. inflation and AI demand

Asian stock markets experienced significant movement this week, driven by cooling U.S. inflation data and strong demand for semiconductor and artificial intelligence technologies. Benign U.S. inflation reports have reduced market expectations for an imminent interest rate hike by the Federal Reserve, fostering a more positive sentiment across regional exchanges.

In South Korea, the Kospi saw notable gains, supported by surges in semiconductor stocks such as Samsung Electronics and SK Hynix. Similarly, Japan’s Nikkei 225 advanced, benefiting from the global technology rally. While some markets like Hong Kong and mainland China saw more mixed or downward results, the broader Asia-Pacific region trended toward its strongest weekly performance in months.

Geopolitical tensions in the Middle East, particularly regarding the Strait of Hormuz and Iran, remain a primary risk factor that could impact oil prices and revive inflation concerns. Despite these uncertainties, investors have largely focused on the AI theme and the shifting global monetary policy outlook.