Asian markets rally on AI demand and semiconductor strength

Asian financial markets are experiencing significant volatility and shifts driven by AI demand and macroeconomic data. In Taiwan, the stock market has seen a strong rebound, with the weighted index climbing toward the 46,000 mark. This recovery is supported by foreign capital inflows and sustained investment interest from US cloud service providers in the AI sector, particularly benefiting semiconductor and memory chip manufacturers like TSMC and Nanya Technology.

In Hong Kong, the Hang Seng Index has seen gains, bolstered by a rally in chip and optical communication stocks. Notable movements include SMIC's surge following earnings and SenseTime's jump on news of a projected turnaround to profitability. Meanwhile, gold prices have hit recent highs, surpassing $4,400 per ounce, driven by geopolitical risks and shifting interest rate expectations.

In mainland China, economic indicators show mixed results, including a record contraction in new RMB loans and a slowdown in M2 growth. In the corporate sector, Meituan is undergoing an AI transformation through its CatPaw platform to integrate AI into core business operations. Additionally, analysts are monitoring potential changes to the Hang Seng Tech Index composition, which may include more AI and advanced hardware companies.