BY EMMANUEL OGBONNA
Asian equity markets kicked off 2026 on a positive note, with gains across much of the region reflecting renewed investor confidence in technology shares and growing optimism about the long-term impact of artificial intelligence on global growth.
South Korea led the advance, with its benchmark index closing at a record high on Friday. The rally in Asia was mirrored by gains in U.S. stock futures and a modest rise in oil prices, signaling broadly upbeat sentiment as the new year begins.
Investors continue to bet that artificial intelligence will remain a powerful driver of corporate earnings and capital investment, particularly through rising demand for advanced computer chips, data centers and related infrastructure. That theme dominated trading across several Asian markets, lifting major technology stocks and suppliers linked to the AI ecosystem.
Hong Kong’s Hang Seng Index surged 2.6% to finish at 26,283.53, powered by a strong rally in technology and internet-related shares. E-commerce and cloud computing heavyweight Alibaba rose 3.7%, while Baidu jumped 9.5% after announcing plans to spin off its artificial intelligence chip unit, Kunlunxin. Baidu said the unit is expected to seek a listing in Hong Kong in early 2027, pending regulatory approvals, a move investors viewed as a step toward unlocking value in its fast-growing AI business.
South Korea’s Kospi climbed 2.3% to 4,309.63, setting a new closing record. The gains were led by Samsung Electronics, which surged 7.2% as strong demand expectations for memory and advanced semiconductors boosted the outlook for the world’s largest chipmaker. SK Hynix, a key supplier of high-performance memory chips used in AI applications and a partner of U.S. chip designer Nvidia, added 4%, further underscoring the market’s focus on AI-related growth.
Elsewhere in the region, markets in Tokyo, Shanghai, Thailand and New Zealand were closed for holidays, thinning regional trading volumes.
In Australia, the S&P/ASX 200 edged 0.2% higher to 8,727.30, supported by modest gains across several sectors despite the absence of strong catalysts. Taiwan’s Taiex rose 1.3%, benefiting from its heavy weighting in semiconductor manufacturers closely tied to global chip supply chains. India’s Sensex added 0.6%, extending its steady upward momentum as investors remained encouraged by domestic growth prospects.
Overall, the strong start to 2026 reflects investor confidence that enthusiasm surrounding artificial intelligence, combined with resilient economic growth in parts of Asia, will continue to support equity markets in the months ahead.
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