MSCI Asia Pacific Index jumps 4.3% as Samsung, SK Hynix lead a tech rally after Amazon and Microsoft earnings boosted AI confidence.
Asian stocks posted their biggest gain in nearly four months as investors piled into chipmakers after blockbuster earnings from major tech firms reinforced optimism over AI demand.
The MSCI Asia Pacific Index climbed as much as 4.3%, putting the gauge on track for a second week of gains despite sharp market swings earlier. South Korea's Kospi led the rally, surging as much as 17% thanks to heavyweights Samsung Electronics Co. and SK Hynix Inc., while Taiwanese stocks gained more than 7%.
The move followed a sharp rebound in global tech shares after firms including Amazon.com Inc. and Microsoft Corp. unveiled aggressive spending plans alongside strong earnings. Overnight, the Philadelphia Semiconductor Index notched its biggest advance in over a year as the tech giants signaled little sign of slowing their AI infrastructure ambitions.
"Today's surge reflects investors temporarily switching off the alarm around technology stocks," said Hebe Chen, a senior market analyst at Vantage Global Prime. "The earnings have given investors fresh reason to believe the AI demand engine is still running, unleashing bargain hunting and short covering across the names hit hardest."
The rebound offers some relief after a week of whipsaw trading fueled by growing concerns over the sustainability of AI spending. Those worries peaked Wednesday when investors offloaded shares of SK Hynix despite the memory-chip maker reporting a sixfold jump in quarterly profit.
On Friday, shares of Samsung and SK Hynix surged more than 25%, marking their biggest one-day gains in decades.
Some traders urged caution. "Sectors with less AI exposure are worth exploring further as the AI trade has become crowded," said Sat Duhra, a portfolio manager at Janus Henderson Investors, who suggested rotating into under-owned markets like Singapore and Thailand.
AlphaScala's proprietary data shows Microsoft (MSFT) at an Alpha Score of 60/100, labeled Moderate, with the stock trading at $451.10 after a 15.51% gain today. Amazon (AMZN) carries an Alpha Score of 55/100, labeled Mixed, at $235.50 after rising 3.90%. Both companies reported earnings that reinforced the AI demand narrative.
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