Asian stock markets are heading for their fourth straight week of gains, supported mainly by strong performance in technology and semiconductor stocks. Investors have shown renewed confidence in tech shares after encouraging earnings and positive outlooks linked to artificial intelligence (AI) demand.
A key driver of the rally has been Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker. The company reported better-than-expected results and gave an optimistic outlook, pointing to continued strong demand for advanced chips used in AI applications. This lifted TSMC’s shares sharply and boosted confidence across global chip and technology stocks.
Following TSMC’s results, tech stocks in several Asian markets moved higher. South Korean shares, which have a large exposure to semiconductor companies, saw notable gains. Technology-heavy indices across the region also advanced, reflecting strong investor interest in AI-linked businesses.
The positive mood in Asia followed a recovery on Wall Street, where US markets stabilised after recent volatility. Gains in major U.S. technology stocks helped improve overall global sentiment, encouraging investors to take on more risk.
Other asset classes showed mixed movement. Bond markets were largely steady, while US Treasury yields eased slightly after data showed fewer Americans filing for unemployment benefits, suggesting resilience in the US labour market. Oil prices stabilised after recent declines, while traditional safe-haven assets such as gold edged lower as investors moved towards equities.
Despite the recent rally, market participants remain cautious about potential risks, including global economic uncertainty, interest-rate expectations, and geopolitical developments. However, strong earnings from major technology companies have helped offset some of these concerns.
Analysts note that technology stocks, which had faced pressure earlier due to profit-taking and sector rotation, are once again attracting buyers. The renewed focus on AI growth and solid corporate earnings has strengthened the case for further gains, at least in the near term.
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