Overview

Asian equity markets traded in a tight but positive range on Thursday, bolstered by continued strength in the technology sector, particularly among chipmakers and AI infrastructure firms. While lingering macroeconomic concerns weighed on broader sentiment, investors remained focused on resilient earnings momentum from tech giants across the region.

Benchmarks in Japan, Taiwan, and South Korea ended slightly higher, reflecting growing investor confidence in the global semiconductor supercycle and its ripple effects across Asian manufacturing economies.

Regional Market Snapshot – July 11, 2025

Chipmakers Lead the Charge

Tech-related gains were spearheaded by semiconductor stocks, which remain the backbone of Asia’s export economy and are seeing unprecedented global demand amid the AI revolution.

Top performers:

• TSMC (Taiwan) rose 1.2% to a record high on strong chip orders from Nvidia and Apple

• Samsung Electronics (Korea) gained 0.8% after its Q2 guidance beat expectations

• Sony (Japan) jumped 1.6% as it unveiled a new AI-powered imaging chip for autonomous vehicles

“The AI-driven hardware boom is lifting the entire supply chain,” said Mizuho Securities analyst Aiko Tanaka. “From memory to photonics, Asian firms are gaining ground.”

Japan’s Nikkei Hits Record Highs

Japan’s Nikkei 225 has now gained over 28% year-to-date, outperforming many global peers. A weak yen and global demand for Japan’s high-end technology exports continue to support valuations.

Key catalysts:

• BOJ’s continued dovish stance despite sticky inflation

• Robust foreign capital inflows, especially from U.S. and European pension funds

• Surging orders for industrial automation and robotics

Companies like Keyence, Fanuc, and Tokyo Electron have been standout performers, drawing interest from global ETFs and tech-focused hedge funds.

South Korea’s Kospi Rides AI Wave

South Korea’s Kospi index remains supported by solid gains in:

• SK Hynix: Up 1.4% on rising demand for high-bandwidth memory (HBM) chips

• Naver and Kakao: Tech platforms rebounding after regulatory easing and AI integration

• Hyundai Mobis: Gains on new EV battery partnerships with U.S. firms

“Korean equities are playing catch-up,” said Kim Ji-hoon, strategist at Mirae Asset. “Investors are revisiting undervalued AI exposure and electric vehicle supply chains.”

Taiwan’s TAIEX Eyes Breakout

Taiwan’s TAIEX index is flirting with new all-time highs, fueled by optimism around the AI chip boom and stable export data.

Notable trends:

• Electronics shipments rose 6.8% in June YoY

• TSMC’s CapEx expansion plans signal long-term confidence

• Inflows from U.S. tech ETFs reaching record levels

Local analysts expect Taiwan’s benchmark to remain buoyant, provided global macro volatility does not reaccelerate in Q3.

China Underperforms Amid Economic Concerns

China’s mainland stocks and Hong Kong’s Hang Seng lagged behind, weighed by:

• Lingering property market stress

• Weak consumer demand and slow credit growth

• Cautious sentiment ahead of potential stimulus from Beijing

While tech names like Alibaba and Tencent showed marginal improvement, investor appetite for Chinese equities remains limited compared to broader Asia.

“The divergence between North Asia and China is widening,” said Nomura economist Ting Lu. “Without stronger policy support, the upside is capped.”

Global Implications: Asian Tech as a Growth Engine

The strength of Asia’s tech sector has global ramifications. As Nvidia, Microsoft, and Amazon drive demand for compute infrastructure, Asian suppliers in semiconductors, optics, and passive components stand to benefit disproportionately.

• Japan and Taiwan are now key geopolitical allies in the AI arms race

• Korea is becoming a key export hub for AI-integrated hardware

• India and Vietnam continue to attract supply chain diversification flows, particularly in assembly and testing services

Outlook: Volatility Expected, But Momentum Holds

While risks remain — including U.S. inflation data, central bank policy moves, and trade tensions — analysts remain constructive on Asian tech-heavy markets heading into H2 2025.

“Investors are rotating into real earnings stories — and Asia’s tech giants are delivering,” said Goldman Sachs Asia-Pacific strategist Kenji Nakamura.

Conclusion

Asian equity markets are proving resilient in the face of global uncertainty, with technology and semiconductor strength acting as stabilizing forces. As the AI economy matures and infrastructure spending continues globally, Asia’s role as a technology manufacturing powerhouse is more important than ever.

With macro clouds persisting elsewhere, Asian tech may offer one of the clearest equity narratives in global markets.