Asian Stock Markets: Korea Composite Index Hits Record High, Nikkei Breaks 58,000 Points; US Employment Data Becomes Focus

Investing.com - Most Asian stock markets rose on Thursday, with the South Korean market reaching a record high driven by strong gains in chip manufacturers, while Japan’s stock market remained steady after hitting a new record above 58,000 points, buoyed by optimism from “Koshin trading.”

However, robust U.S. employment data showing steady labor market growth eased concerns about the health of the world’s largest economy but also reduced expectations for a Federal Reserve rate cut in the near term, limiting gains in the Asian region.

Wall Street indices closed roughly flat last night, and futures saw little change during Asian trading hours.

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KOSPI hits record high driven by Samsung’s optimism over AI prospects

In Seoul, the KOSPI rose nearly 3% to a record high of 5,515.8 points, continuing its rally fueled by demand for AI-related semiconductors.

Samsung Electronics (KS:005930) surged over 6 to a record high after an executive highlighted the company’s technological advantages in next-generation HBM4 (high-bandwidth memory) chips, boosting market optimism about its production roadmap and competitive edge in advanced AI memory solutions.

Investors are increasingly optimistic that HBM4 will support the next phase of AI hardware growth, boosting profit margins and earnings visibility.

SK Hynix (KS:000660) also rose 3.5%, benefiting from continued market expectations for high-end memory chips used in AI servers.

Nikkei Index breaks through historic 58,000 points

In Japan, the Nikkei 225 index earlier broke through 58,000 points for the first time, reaching a record high before pulling back and remaining nearly flat.

The broader TOPIX index also jumped 1.5% to a record high of 3,888.94 points.

This rally is partly attributed to the so-called “Koshin trading” optimism following Prime Minister Shinzo Koshin’s election victory.

Stock investors welcomed her growth-promoting stance, including policies aimed at supporting domestic industries, increasing defense spending, and maintaining accommodative monetary conditions, which are viewed as favorable for exporters and cyclical stocks.

U.S. employment data dampen expectations for Fed rate cuts

Wednesday’s data showed that U.S. non-farm payrolls increased by 130,000 jobs in January, significantly surpassing economists’ expectations, and the unemployment rate unexpectedly fell from 4.4% to 4.3%, indicating continued resilience in the labor market.

The report eased some concerns about an economic slowdown but also reduced expectations for an imminent Fed rate cut.

Back in the Asia-Pacific region, the Australian S&P/ASX 200 rose 0.5%, and the Singapore Straits Times Index increased 0.7%.

China’s CSI 300 and Shanghai Composite indices were largely unchanged.

Contrary to regional trends, Hong Kong’s Hang Seng Index declined over 1%.

India’s Nifty 50 futures rose slightly by 0.1%.

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