Positive US Tech Earnings Outlook and Easing US-Iran Tensions Drive Japan and South Korea Stocks to Record Highs Again

TradingKey - During the early Asian session on April 27, driven by positive earnings outlooks for U.S. tech firms, demand for AI-related stocks such as chips and semiconductors surged, pushing both Japanese and South Korean stock markets to all-time highs.

The Nikkei 225 Index hit an intraday high of 60,348.83 points. As of press time, it remained up 0.7%, trading at 60,135.21 points.

By sector, semiconductors and electrical equipment led the gains, while pharmaceuticals, marine transportation, and securities were among the top decliners. Among individual stocks, Keyence rose 15.83%, Kioxia gained 3.41%, and Advantest climbed 1.8%.

South Korea's KOSPI Index reached an intraday high of 6,603.01 points. As of press time, it was up 1.66%, trading at 6,583.07 points. Among heavyweight stocks, SK Hynix rose 5.32%, Hyundai Motor gained 2.92%, and Samsung Electronics added 1.71%.

Goldman Sachs is bullish on the South Korean stock market, noting that driven by factors such as growing demand for AI chips and upward revisions to corporate earnings forecasts, the current valuation of the KOSPI is attractive. Consequently, the firm raised its target for the index from 7,000 to 8,000 points.

U.S. tech stocks strengthened across the board last Friday. As of the close on April 24, the Philadelphia Semiconductor Index rose 4.32% to end at 10,513.66 points, marking its 18th consecutive day of gains! Notably, Intel surged 23.6%, Arm Holdings rose 14.76%, AMD climbed 13.91%, Qualcomm gained 11.12%, and TSMC added 5.17%.

Shoji Hirakawa, chief global strategist at Tokai Tokyo Research Institute, stated: "Supported by strong earnings expectations, AI-related stocks are expected to remain resilient, and the Nikkei Index may trend slightly upward. These assets are less affected by economic fluctuations and rising oil prices, and their valuations continue to remain at elevated levels."

In geopolitical news, Axios reported that Iran has submitted a new proposal to the U.S., calling for prioritized negotiations on issues such as navigation in the Strait of Hormuz and the lifting of maritime blockades, while deferring nuclear talks. The proposal is intended to break the negotiation deadlock and bypass internal rifts within Iran's leadership—there is still significant disagreement over the scale of nuclear concessions to be made to the U.S. According to three U.S. officials, Trump will convene high-level national security and diplomatic officials on Monday for a special meeting on the situation in Iran. Sources said the meeting will focus on assessing the current stalemate in U.S.-Iran negotiations and discussing subsequent response measures.

In summary, the substantial rally in the U.S. semiconductor sector was the primary driver behind the record highs in Japanese and South Korean markets. High prosperity and earnings certainty in the AI industry have propelled the semiconductor supply chain into a core leading position. Meanwhile, the easing of geopolitical tensions has also aided market sentiment, though geopolitical uncertainty remains high, requiring continued vigilance.