Asian stock markets climbed on Friday as investors piled back into semiconductor and artificial intelligence (AI) shares ahead of the highly anticipated U.S. stock market debut of South Korean memory-chip maker SK Hynix.
The rally came despite renewed military exchanges between the United States and Iran, with investors largely looking past geopolitical tensions and instead focusing on continued momentum in AI-related stocks. Oil prices remained elevated after this week’s Middle East flare-up, but markets appeared more concerned with corporate earnings and technology demand than immediate geopolitical risks.
AI and chip stocks drive regional gains
Technology shares led gains across Asia, with semiconductor companies once again at the centre of investor enthusiasm.
Japan’s Nikkei 225 rose 1.8%, while South Korea’s KOSPI surged more than 5%, extending its position as one of the world’s strongest-performing equity markets this year.
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Among the biggest gainers:
- SK Hynix climbed nearly 3%.
- Samsung Electronics advanced around 6%.
Taiwan’s financial markets remained closed because of a typhoon.
The broader MSCI Asia-Pacific index excluding Japan gained 1.8%, while European futures pointed to a more cautious opening.
Markets shrug off Middle East tensions
Investors largely ignored renewed military exchanges between the United States and Iran, despite concerns that the fragile ceasefire between the two countries continues to weaken.
Oil prices remained on course for their strongest weekly gain since early May.
Brent crude traded around $76.70 per barrel, up roughly 5% for the week, although still well below the peaks reached during the height of the conflict earlier this year.
Analysts said markets appeared increasingly comfortable separating geopolitical risks from the broader AI-driven investment story.
However, some warned that risks remain if shipping through the Strait of Hormuz is disrupted again.
SK Hynix’s U.S. listing takes centre stage
Investor attention is firmly focused on SK Hynix’s U.S. market debut later on Friday.
The company priced its American Depositary Receipts (ADRs) at $149 each, raising approximately $26.5 billion, making it one of the largest equity offerings ever by an Asian technology company.
The proceeds will help finance:
- New semiconductor manufacturing plants.
- Expanded production capacity.
- Investment in AI memory chips and related infrastructure.
The offering is expected to become the world’s second-largest share sale after SpaceX’s record-breaking initial public offering.
AI boom continues to fuel optimism
The enthusiasm surrounding SK Hynix reflects continued investor confidence in the rapid expansion of AI infrastructure.
The rally also gained support overnight after U.S. memory-chip maker Micron Technology announced plans to invest more than $250 billion in the United States through 2035.
The announcement lifted semiconductor stocks on Wall Street, with the Philadelphia Semiconductor Index rising about 3%, helping set the tone for Asian trading.
Market participants believe the SK Hynix listing could further improve global investor access to one of the world’s leading AI memory suppliers.
Some analysts also expect the U.S.-listed shares to trade at a premium to those listed in South Korea, potentially supporting higher valuations for both SK Hynix and Samsung Electronics.
South Korea extends market leadership
SK Hynix has been one of the biggest beneficiaries of the AI investment boom.
Its shares have risen roughly 238% this year, helping propel South Korea’s benchmark KOSPI index to record highs and making it one of the world’s best-performing major equity markets in 2025.
Analysts say any successful U.S. debut could reinforce investor confidence across South Korea’s semiconductor sector.
Yen strengthens after policy comments
Currency markets also reacted to comments from Japan’s Finance Minister Satsuki Katayama, who said the government wants to explore ways to encourage domestic pension funds—including the Government Pension Investment Fund (GPIF)—to increase investments in Japanese financial assets.
The remarks lifted the yen by around 0.4% against the U.S. dollar, with the currency strengthening to about 161.7 per dollar after hovering near four-decade lows in recent days.
Analysts said encouraging more domestic investment could provide longer-term support for the yen while reducing reliance on direct government intervention in foreign exchange markets.
Interest rates remain in focus
Beyond corporate developments, investors continue to monitor the outlook for U.S. monetary policy.
Markets are currently pricing in about 34 basis points of additional Federal Reserve rate hikes this year, though expectations could shift depending on whether higher oil prices begin feeding into inflation.
The combination of resilient AI demand, elevated energy prices and geopolitical uncertainty is expected to keep markets volatile in the coming weeks.
Future outlook
The success of SK Hynix’s U.S. market debut will be closely watched as a barometer of investor appetite for AI-related companies and could influence valuations across the global semiconductor industry.
At the same time, markets remain vulnerable to renewed Middle East tensions. Any disruption to energy supplies or shipping through the Strait of Hormuz could quickly revive inflation concerns and alter expectations for interest rates, even as the AI-driven rally continues to support global technology stocks.
With information from Reuters.
