AI-linked shares lift regional markets, though holiday closures keep trading volumes light
Asian equity markets kicked off 2026 on a positive footing on Friday, extending last year’s momentum, although trading activity remained thin as major markets in Tokyo and Shanghai stayed closed for public holidays.
The upbeat start followed a stellar performance in global equities in 2025. In the United States, the S&P 500 gained 16.4 per cent, the technology-heavy Nasdaq surged 20.4 per cent, while London’s FTSE 100 capped the year with its strongest festive-season rally in more than a decade.
Across Asia, investors were also rewarded handsomely in 2025. South Korea’s stock market soared by about 75 per cent, Hong Kong’s Hang Seng Index jumped 28 per cent, and Japan’s Nikkei 225 climbed more than 26 per cent.
Market analysts say optimism has carried into the new year, with expectations that the global rally still has room to run.
“The start of a new year always brings the big question of whether the rally can continue, and the general view is that it can,” said Kyle Rodda, market analyst at Capital.com. He noted that investors are betting on stronger U.S. economic growth in 2026, easing inflation and interest rate cuts, alongside improving corporate earnings.
In early trading on Friday, Hong Kong stocks advanced 2.2 per cent, led by strong gains in technology shares. Chip designer Biren Technologies surged about 80 per cent following its market debut, after raising more than $700 million in its initial public offering.
The strong listing reinforced investor enthusiasm for artificial intelligence-related assets, which analysts say remains robust.
Biren “commands scarcity value and strong market attention,” said Kenny Ng, a strategist at China Everbright Securities, adding that the semiconductor and AI space continues to show significant growth potential.
Technology sentiment was further boosted after Chinese search engine giant Baidu climbed nearly seven per cent, following its announcement that its AI chip subsidiary, Kunlunxin, had filed an application to list in Hong Kong.
Other regional markets also closed higher. Taipei, Sydney, Jakarta, Manila and Singapore all recorded gains, while South Korea’s Kospi Index rose 1.7 per cent, building on last year’s rally that was largely driven by the global AI boom.
Shares of Samsung Electronics added about three per cent after co-CEO Jun Young Hyun said customers had given positive feedback on the company’s high-bandwidth memory chips, with some describing the development as a sign that “Samsung is back,” according to Bloomberg.
In commodities, precious metals started the year on a firmer note after recent volatility. Gold rose 0.64 per cent, while silver gained 1.5 per cent, following sharp swings late last year.
Meanwhile, oil prices edged higher, with Brent crude up 0.5 per cent at $61.17 per barrel, and U.S. West Texas Intermediate gaining 0.6 per cent to $57.74 per barrel.
As of around 0430 GMT, the euro traded slightly stronger against the dollar at $1.1757, while the pound edged up to $1.3480. The dollar also firmed marginally against the yen at 156.84.
Wall Street ended the previous session mixed, with the Dow Jones Industrial Average closing 0.6 per cent lower, while London’s FTSE 100 slipped 0.1 per cent.
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