South Korea's KOSPI surged about 3.5% on Wednesday as a semiconductor rally lifted Samsung Electronics, SK Hynix and LG Innotek, while Hong Kong tech stocks fell and China's mainland gauges rose. Investors are now watching the U.S. CPI report and rising oil prices tied to Strait of Hormuz tensions for the next market move.
South Korea's KOSPI jumped about 3.5% on Wednesday, leading gains across most Asian markets as a renewed semiconductor rally pushed regional chip stocks higher. Japan's Nikkei 225 rose 1%. The MSCI AC Asia Pacific gauge advanced about 0.6%.
The rally followed strong results from CoreWeave and Super Micro Computer in the U.S., which reinforced confidence that heavy AI infrastructure spending remains intact. Nvidia also said it had partnered with six major financial institutions on compute-financing platforms designed to mobilize more than $500 billion in third-party capital for AI infrastructure.
Samsung and SK Hynix jump on Temasek report
Samsung Electronics surged 6.7%. SK Hynix jumped 5.5%, supported by a report that Singapore's Temasek plans to invest directly in both chipmakers. LG Innotek climbed over 10% on the same report. The potential investments come as the two companies face growing investor pressure to return more cash from the AI-driven memory boom.
Both companies currently target returns equivalent to about 50% of free cash flow, and SK Hynix has said it is reviewing additional measures and expects to announce details in the third quarter.
Hong Kong tech drags as mainland China gains
China's Shanghai Shenzhen CSI 300 gained 0.6%. The Shanghai Composite rose 0.3%. The Hang Seng, however, fell about 1% as Hong Kong technology stocks weakened. Alibaba dropped 3.1% and Tencent lost 2.9%.
The divergence came as investors weighed strong AI-related earnings against broader risk from higher oil prices and inflation. Emerging-market flows also improved: IIF data showed non-residents poured nearly $19 billion into emerging-market securities in July, ending two straight months of outflows.
CPI test looms as oil rises on Hormuz risk
Attention now shifts to the U.S. CPI report, with forecasts pointing to a 0.1% monthly increase in headline CPI and a 3.4% annual rise in July. Core CPI is expected to rise 0.2% month-on-month, with annual core inflation at 2.5%. A softer reading could ease pressure on the Fed after three FOMC officials dissented in July in favour of a rate hike.
Oil prices extended their rally as hopes for a quick reopening of the Strait of Hormuz faded, with Brent crude climbing for a sixth straight session to around $89.44 a barrel as Washington and Tehran hardened their positions. Australia's S&P/ASX 200 fell 0.5% after the RBA left its cash rate at 4.35%. India's Nifty 50 declined about 0.7%. Singapore's FTSE Straits Times slipped 0.8%.
Source: Investing.com
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