Asian markets advanced on Monday, led by strong gains in Japan and South Korea, as renewed confidence in artificial intelligence boosted technology and semiconductor shares. Investors grew more optimistic about resilient AI and data-center demand while digesting China’s decision to keep key lending rates unchanged.
Japan’s Nikkei 225 jumped 2%, driven by notable strength in Advantest and a sharp rise in SoftBank Group, while South Korea’s KOSPI also climbed 2% with Samsung Electronics and SK Hynix leading the rally. The rebound mirrored last week’s recovery in U.S. tech stocks, as concerns over heavy AI spending and stretched valuations eased slightly.
Elsewhere in the region, China’s Shanghai Composite gained 0.6%, the CSI 300 rose 0.8%, and Hong Kong’s Hang Seng Index edged higher. Australia’s ASX 200 climbed 1%, Singapore’s Straits Times Index added 0.7%, and India’s Nifty 50 futures posted modest gains.
The People’s Bank of China kept both the one-year and five-year Loan Prime Rates unchanged, signaling a preference for policy stability as authorities balance growth support with financial risks. With year-end approaching, trading volumes are expected to lighten, but investor sentiment toward AI and tech sectors remains closely tied to Wall Street’s performance.