Asian markets open: Kospi soars over 3% to a record high on OpenAI chip deal
A tidal wave of optimism has swept across Asian markets, as a landmark partnership between the AI titan OpenAI and two of South Korea’s biggest companies sent the nation’s stock market soaring to a new all-time high.
This powerful, tech-led rally has overshadowed a worrying inflation print and is part of a broader, defiant surge across the region, as investors take their cue from a resilient Wall Street that has boldly shrugged off the chaos of a US government shutdown.
A record-setting day in Seoul
The star of the session is undoubtedly South Korea, where the blue-chip Kospi index has jumped more than 3 percent to a new record.
The explosive rally was ignited by the news, announced late Wednesday, that Samsung Electronics and SK Hynix have forged a partnership to supply their advanced memory chips to OpenAI.
The market’s verdict on the deal was immediate and spectacular. Shares in Samsung rose over 4 percent, while SK Hynix skyrocketed an incredible 11 percent, a stunning gain that single-handedly lifted the entire index.
The rally was so powerful that it completely overshadowed a report showing that the country’s consumer price index had unexpectedly ticked higher in September, a development that would normally put a chill on the market.
A broad rally, a golden debut
This powerful, tech-fueled optimism is not confined to Seoul. The rally is broad-based, with Japan’s Nikkei 225 advancing 0.6 percent, Australia’s S&P/ASX 200 surging 1.14 percent, and Hong Kong’s Hang Seng Index climbing 1.30 percent.
The buying frenzy in Hong Kong has been highlighted by the continued, stunning performance of Zijin Gold, whose shares have skyrocketed nearly 12 percent, building on the spectacular gains it has made since its trading debut on Tuesday.
A defiant Wall Street sets the tone
This powerful Asian session is a direct echo of the defiant mood on Wall Street. Overnight, all three major US benchmarks closed higher, with the S&P 500 hitting a new all-time intraday high.
The rally is a clear and powerful signal that investors are, for now, completely unperturbed by the US government shutdown, betting that the political impasse will be short-lived.
While the shutdown is expected to last at least three days, and could drag on for nearly two weeks, the market has chosen to look past the political drama and focus on the fundamentals.
As a new day dawns, and with Chinese and Indian markets closed for holidays, that bullish conviction is proving to be a powerful and contagious force.
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Asian markets open: Kospi soars over 3% to a record high on OpenAI chip deal
A tidal wave of optimism has swept across Asian markets, as a landmark partnership between the AI titan OpenAI and two of South Korea’s biggest companies sent the nation’s stock market soaring to a new all-time high.
This powerful, tech-led rally has overshadowed a worrying inflation print and is part of a broader, defiant surge across the region, as investors take their cue from a resilient Wall Street that has boldly shrugged off the chaos of a US government shutdown.
A record-setting day in Seoul
The star of the session is undoubtedly South Korea, where the blue-chip Kospi index has jumped more than 3 percent to a new record.
The explosive rally was ignited by the news, announced late Wednesday, that Samsung Electronics and SK Hynix have forged a partnership to supply their advanced memory chips to OpenAI.
The market’s verdict on the deal was immediate and spectacular. Shares in Samsung rose over 4 percent, while SK Hynix skyrocketed an incredible 11 percent, a stunning gain that single-handedly lifted the entire index.
The rally was so powerful that it completely overshadowed a report showing that the country’s consumer price index had unexpectedly ticked higher in September, a development that would normally put a chill on the market.
A broad rally, a golden debut
This powerful, tech-fueled optimism is not confined to Seoul. The rally is broad-based, with Japan’s Nikkei 225 advancing 0.6 percent, Australia’s S&P/ASX 200 surging 1.14 percent, and Hong Kong’s Hang Seng Index climbing 1.30 percent.
The buying frenzy in Hong Kong has been highlighted by the continued, stunning performance of Zijin Gold, whose shares have skyrocketed nearly 12 percent, building on the spectacular gains it has made since its trading debut on Tuesday.
A defiant Wall Street sets the tone
This powerful Asian session is a direct echo of the defiant mood on Wall Street. Overnight, all three major US benchmarks closed higher, with the S&P 500 hitting a new all-time intraday high.
The rally is a clear and powerful signal that investors are, for now, completely unperturbed by the US government shutdown, betting that the political impasse will be short-lived.
While the shutdown is expected to last at least three days, and could drag on for nearly two weeks, the market has chosen to look past the political drama and focus on the fundamentals.
As a new day dawns, and with Chinese and Indian markets closed for holidays, that bullish conviction is proving to be a powerful and contagious force.
The post Asian markets open: Kospi soars over 3% to a record high on OpenAI chip deal appeared first on Invezz
Read More
Morning brief: Thai crypto push; Japan bond warning; Manhattan housing boom