(Sharecast News) - Asian stock markets put in solid gains on Thursday as a strong performance from the AI and chip sectors provided a boost.
The Asia Dow jumped 1.5%, the Hang Seng surged 1.7% and Singapore's STI gained 1.4%, while the Nikkei 225 and Sensex both rose 0.9%. South Korea's KOSPI, however, was the standout performer with a 2.7% jump to a new all-time high of 3,549.21.
"Asia markets opened the day like an AI rocket ship, testing the outer layers of its own atmosphere. Technology was the booster fuel, and South Korea the launch pad," said Stephen Innes, managing partner at SPI Asset Management. "Samsung and SK Hynix ripped higher on the back of OpenAI's Stargate supply pact, a deal that feels less like a headline and more like scaffolding for the trillion-dollar AI cathedral rising on the global skyline."
Both Samsung and SK Hynix hit new multi-year highs, rising 4% and 10% respectively, after the companies made a chip and data-centre deal through OpenAI's Stargate initiative, aimed at expanding infrastructure critical to AI development, globally and in Korea. The combined market caps of the Korean stocks gained $37bn on Thursday alone.
"These partnerships will focus on increasing the supply of advanced memory chips essential for next-generation AI and expanding data centre capacity in Korea, positioning Samsung and SK as key contributors to global AI infrastructure and supporting Korea's ambition to become a top-three global AI nation," OpenAI said in a statement.
In other equity news, Japanese pharma stocks Chugai Pharmaceutical and Lasertec were performing well, tracking the global sector higher after Pfizer struck a deal with Washington DC to lower sector-specific tariffs in exchange for lower drug prices and investments into US manufacturing.
Also in Japan, bonds were weaker after a 10-year debt auction saw weak demand ahead of the country's ruling party's leadership vote on Saturday. "Demand was sluggish, the bid-to-cover ratio softened, and the auction tail widened - clear signs of investors holding their fire with a BOJ hike in sight and an LDP leadership election days away," Innes said.