Asian stock markets experienced significant gains, with MSCI Inc.'s gauge of Asian shares climbing 0.9%, heading for a fifth consecutive day of increases. This rally was largely attributed to renewed optimism surrounding artificial intelligence and its potential to accelerate technology investment and increase demand for semiconductors. Key contributors to these gains included memory chipmakers Samsung Electronics Co. and SK Hynix Inc., following a strong performance by their Wall Street counterparts.
The positive sentiment was fueled by the early success of Meta Platforms Inc.'s new AI agent, Muse, which reportedly topped download charts and revived enthusiasm for the sector. Meta's shares surged 11%, while Advanced Micro Devices Inc. (AMD) saw its market capitalization exceed $1 trillion. This AI-driven momentum also propelled the Nasdaq 100 to a 2.8% jump and the S&P 500 to their best day since early August. An index of US semiconductor stocks rallied over 4%.
Further boosting tech sector confidence, Alibaba Group Holding Ltd. announced its new AI chip, designed to compete with Nvidia Corp., leading to a rally in its shares in Hong Kong, alongside Tencent Holdings Ltd. and its latest image-generation model. South Korea's Kospi Index advanced 1.5% to over 2%, and Taiwan's stock benchmark reached an intraday record high. Analysts like Kyle Rodda from Capital.com highlighted Meta's AI chatbot as a significant catalyst, improving sentiment throughout the AI ecosystem, particularly for chips.
Beyond AI, oil prices remained stable, with Brent crude trading around $100 a barrel after a 3.4% decline on Monday due to easing Middle East supply concerns and apparent progress in US-Iran talks. The dollar was firm amid expectations of further interest rate hikes, with the yen hovering near a three-week low. Investors are also looking forward to a summit between US President Donald Trump and Chinese counterpart Xi Jinping, which is expected to address trade and establish a communication channel for AI concerns.
