Image Source : TipRanks
Asian markets surged as AI-driven semiconductor demand fueled a rally, with Singapore’s benchmark index crossing the 5,000 mark for the first time. Tech-heavy markets in Taiwan, South Korea, and Singapore hit fresh highs, underscoring the region’s central role in the global chip supply chain despite concerns over valuations and currency pressures.
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Asia’s equity markets kicked off 2026 with strong momentum, powered by robust demand for artificial intelligence chips and semiconductors. The rally highlights investor confidence in the region’s technology sector, which remains at the core of the global supply chain.
Key Highlights:
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Singapore Milestone: The Straits Times Index crossed 5,000 points, marking a historic high.
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Regional Gains: Taiwan’s benchmark surged past 29,000, while South Korea’s KOSPI hit records led by Samsung Electronics and SK Hynix.
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AI Demand: Semiconductor stocks continue to drive performance, with AI-related applications boosting earnings expectations.
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Global Comparison: Asia’s tech gauge rose 6% year-to-date, outperforming the Nasdaq 100’s 2% gain.
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Valuation Concerns: Analysts caution that stretched valuations and weaker regional currencies may temper future returns, making the next leg of the rally more selective.
This rally underscores Asia’s growing dominance in the AI and semiconductor ecosystem, positioning the region as a critical driver of global market momentum in 2026.
Sources: Bloomberg, Finimize, Economic Times Markets
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