Portugal Colonial - Tech firms lead Asian markets rally as Seoul, Tokyo hit records

Investors built on a broadly healthy week in the region as they piled onto the artificial intelligence bandwagon amid a shift from New York, where there is growing concern about elevated valuations as well as US political and economic uncertainty.

They are also keeping an eye on President Donald Trump's State of the Union address, which comes after his tariff policy was dealt a body blow by the Supreme Court on Friday and as he considers strikes on Iran.

Wall Street's tech titans including Magnificent Seven stalwarts have struggled in 2026 to match the past two years' eye-watering performance, with questions being asked about the vast sums they have invested in AI and when they will see returns.

Fresh worries about the recent release of tools that could hammer software firms have compounded the problems.

The latest blow came from a report Sunday by Citrini Research that used possible scenarios set in the future showing parts of the global economy that could be at risk from new tools, such as credit card and food delivery firms.

But a presentation by AI company Anthropic emphasising the compatibility of its technology with existing programmes tempered some fears, analysts said.

An announcement that Facebook parent Meta had reached an agreement to buy millions of chips from processor-maker AMD also lifted optimism.

Focus is now on the release of earnings from chip behemoth Nvidia later in the day, with analysts saying they could have an outsized impact on markets.

But Matt Weller at City Index warned: "Put simply, 'meeting' earnings expectations is unlikely to be enough to drive the stock higher, especially if conservative guidance reinforces some traders' fears that demand for AI (capital expenditure) may be downshifting."

A rally on all three main bourses on Wall Street provided a healthy lead for Asia, which has also enjoyed a lift from the Supreme Court's tariff announcement.

Seoul's Kospi jumped past 6,000 points for the first time, led once again by chip titans Samsung and SK hynix. The index has surged more than 40 percent this year, having rallied 76 percent in 2025.

Tokyo piled on more than one percent to also hit a new peak, with tech firms Advantest and Tokyo Electron among the best performers.

Taipei's gains were supported by Taiwan Semiconductor Manufacturing Company.

Hong Kong, Shanghai, Sydney and Wellington were also higher.

The yen was steady against the dollar after sinking Tuesday on media reports that Japanese Prime Minister Sanae Takaichi last week told Bank of Japan boss Kazuo Ueda of her concern about hiking interest rates further.

The Mainichi newspaper said she had taken a "tougher stance" than in their November meeting.

- Key figures at around 0200 GMT -

Tokyo - Nikkei 225: UP 1.5 percent at 58,182.00

Hong Kong - Hang Seng Index: UP 0.4 percent at 26,689.40

Shanghai - Composite: UP 0.5 percent at 4,136.09

Dollar/yen: DOWN at 155.70 yen from 155.74 yen on Tuesday

Euro/dollar: DOWN at $1.1779 from $1.1783

Pound/dollar: DOWN at $1.3502 from $1.3508

Euro/pound: DOWN at 87.21 pence from 87.23 pence

West Texas Intermediate: UP 0.6 percent at $66.05 per barrel

Brent North Sea Crude: UP 0.7 percent at $71.23 per barrel

New York - Dow: UP 0.8 percent at 49,174.50 (close)

London - FTSE 100: FLAT at 10,680.59 (close)

X.Matos--PC