On Wednesday, Feb. 25, 2026, equity markets across East Asia pushed to new peaks after a tech-led relief rally on Wall Street eased immediate concerns about AI-driven disruption. South Korea’s Kospi climbed 1.72% to clear the 6,000 mark for the first time, while Japan’s Nikkei 225 jumped more than 1.4% to a fresh high. Gains were broad-based across the region, with Taiwan, Australia and Hong Kong all advancing and Bitcoin recovering to roughly $65,000 after a brief dip below $63,000. Market participants cited renewed appetite for semiconductor and software stocks following an overnight wave of U.S. tech buying.
Key Takeaways
- Kospi rose 1.72%, surpassing the 6,000 level for the first time; heavyweight SK Hynix gained 0.6% and Samsung Electronics rose 0.88%.
- Japan’s Nikkei 225 advanced over 1.4% to a record intraday level; Topix added 0.3%.
- Taiwan’s benchmark climbed 1.8%, marking its fifth straight session at a record high.
- Other regional moves: Australia’s S&P/ASX 200 +1.13%, Hong Kong Hang Seng +0.39%, mainland China’s CSI 300 +0.49%, Kosdaq +0.16%.
- Bitcoin jumped about 2%, returning to approximately $65,000 after a short decline below $63,000.
- U.S. indices rose overnight: S&P 500 +0.77% (6,890.07 close), Nasdaq +1.04% (22,863.68), Dow +0.76% (49,174.50).
- AMD shares surged 8.8% after Meta announced a multiyear GPU deal; Nvidia also rose 0.7% amid ongoing data-center demand for AI chips.
- BMI Research flagged elevated geopolitical risk — assigning a 50% probability to a U.S.-led strike on Iran — which is lifting oil risk premia and influencing currency moves.
Background
Regional markets entered the session following a strong finish in U.S. stocks, where technology and software names led gains after positive corporate developments. The latest buying was centered on semiconductor suppliers and cloud/AI infrastructure plays, reflecting investor hopes that AI deployments will lift corporate spending rather than cause broad disruption. Asian indices are particularly sensitive to U.S. technology momentum because many firms in the region are key suppliers in the semiconductor value chain.
At the same time, markets remain attentive to geopolitical tensions and energy-market dynamics. BMI Research published analysis this week noting a heightened probability of military action involving Iran, a factor that keeps an upside premium on oil and supports the U.S. dollar at times of stress. Central banks’ policy paths and fiscal support measures in major economies continue to form the macro backdrop that shapes risk appetite for equities and currencies across Asia.
Main Event
The Kospi’s 1.72% gain pushed South Korea’s benchmark through 6,000 for the first time, a psychological milestone driven by strength in memory-chip and broader tech components. SK Hynix and Samsung Electronics, two of the index’s largest constituents, added 0.6% and 0.88% respectively, helping lift market-cap-weighted returns. Smaller-cap tech plays also contributed, while the Kosdaq posted a modest 0.16% advance.
In Tokyo, the Nikkei 225 rose more than 1.4% to a fresh high and the broader Topix index added 0.3%. Trading was characterized by rotation into technology and export-oriented manufacturers, as investors reassessed sector winners after a week of AI-related volatility. Taiwan’s benchmark extended its record run, up 1.8% and making a fifth consecutive session at a record high, underscoring continued demand for chip-related exposure.
Across other Asian markets, Australia’s S&P/ASX 200 climbed 1.13%, Hong Kong’s Hang Seng rose 0.39% and mainland China’s CSI 300 added 0.49%. Cryptocurrency markets also contributed to risk-on flows: Bitcoin jumped roughly 2% to near $65,000 after a brief retreat below $63,000 on Tuesday. Commodity prices moved higher on geopolitical risk signals, with WTI crude up 0.72% at $66.10 per barrel and Brent up 0.73% at $71.29 per barrel.
U.S. overnight action supported the regional mood. The S&P 500 closed up 0.77% at 6,890.07, the Nasdaq gained 1.04% to settle at 22,863.68 and the Dow added 370.44 points to 49,174.50. Notable movers included AMD, which jumped 8.8% after Meta disclosed a multiyear GPU supply deal, and Home Depot, which rose nearly 2% after an earnings beat that relieved some cyclical concerns.
Analysis & Implications
The rally highlights how episodes of AI optimism can pivot investor positioning quickly, rewarding semiconductor suppliers and cloud-equipment vendors. The AMD–Meta announcement in particular reinforced the narrative that large tech customers will continue to scale AI infrastructure, which supports revenue visibility for chipmakers and related hardware providers. For regional markets, that dynamic translates into capital flows into Korea, Taiwan and Japan — markets with heavy semiconductor exposure.
However, the underlying picture is mixed. BMI’s elevated probability assessment of a U.S.-led military action on Iran keeps oil prices and risk premia elevated, which can feed through to inflation and complicate central bank choices. A sustained move higher in energy costs would pressure margins for energy-intensive exporters and could tighten financial conditions if central banks respond to second-round inflation effects.
Investor attention will also focus on earnings trajectories and the durability of tech-led demand. Short-term market gains driven by a few large-cap tech wins risk narrow breadth; if AI spending disappoints relative to lofty expectations, stretches of weakness may follow. Conversely, a steady cadence of enterprise AI contracts would lend longer-term legitimacy to current valuations in semiconductors and infrastructure software.
Comparison & Data
| Market | Move (%) | Note / Close |
|---|---|---|
| Kospi | +1.72% | Breached 6,000 for first time |
| Nikkei 225 | +1.4%+ | Fresh high (intraday) |
| Topix | +0.3% | Broader Tokyo index |
| Taiwan | +1.8% | Record high, fifth session |
| S&P/ASX 200 | +1.13% | Australia benchmark |
| Hang Seng | +0.39% | Hong Kong |
| CSI 300 | +0.49% | Mainland China |
| Bitcoin | +~2% | Near $65,000 |
| S&P 500 (US) | +0.77% | Close 6,890.07 |
| Nasdaq (US) | +1.04% | Close 22,863.68 |
| Dow Jones (US) | +0.76% | Close 49,174.50 |
This table aggregates the session moves referenced in market reports. Percent changes highlight the breadth of today’s rally across equities and crypto; absolute closes are shown where available from U.S. markets. The data underline a recurring theme: AI-related headlines can amplify swings in both technology-driven equities and broader risk assets, while geopolitical risk pins a floor under energy-related price moves.
Reactions & Quotes
The global economy appears to be on slightly firmer footing as the effects of fiscal and monetary policy continue to support activity.
BMI Research (research)
BMI analysts warned that geopolitical tensions are elevating risk premia, noting a 50% assessed probability of a U.S.-led attack on Iran — a factor that could push oil and currency volatility higher.
We are in negotiations with them. They want to make a deal, but we haven’t heard those secret words: we will never have a nuclear weapon. My preference is to solve this through diplomacy.
U.S. President Donald Trump (public address)
President Trump’s remarks during the State of the Union are being parsed by investors for implications on geopolitics and sanctions policy, both of which influence energy and risk sentiment.
Unconfirmed
- BMI’s 50% probability of U.S.-led military action on Iran is an analytical estimate, not a prediction of a specific timeline.
- The sustainability of the current AI-driven rally remains uncertain; follow-through buying across broader sectors has not yet been confirmed.
- Details on the scale and timing of AI infrastructure rollouts by major tech customers are evolving and may differ from initial public statements.
Bottom Line
Markets in South Korea and Japan hit fresh highs driven by a wave of optimism about AI-related spending and a supportive U.S. overnight session. Semiconductors and cloud-infrastructure suppliers led gains, lifting benchmarks with concentrated sector exposure. At the same time, geopolitical risk — notably the elevated assessment of conflict involving Iran — keeps oil and FX volatility on investors’ radars, creating a two-sided risk environment.
Looking ahead, the key variables to watch are the momentum of corporate AI procurement announcements, any shifts in oil prices tied to Middle East tensions, and central bank communications on inflation and policy. If AI-driven capital spending proves durable, regional markets with heavy tech exposure could sustain gains; if geopolitical or macro headwinds reassert themselves, the recent upside may reverse quickly.
Sources
- CNBC — news coverage and market data
- BMI Research / Fitch Solutions — research analysis (institutional research)
- Meta — corporate announcement (official)
- AMD — corporate information (official)