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Asian Shares Rally as Dow Hits Record, AI-Related Stocks Mixed Amid Global Market Movements
Asian equity markets rose sharply on Friday after the U.S. Dow Jones Industrial Average set a new record, while stocks tied to artificial‑intelligence (AI) showed a mixed performance.
The upturn was driven by a blend of solid corporate earnings, a rebound in oil prices, and a modest U.S. jobs report that could temper inflation expectations.
In South Korea, the Kospi index recovered from an almost 8% drop the previous day, gaining 2.8% to 7,863.22. Samsung Electronics, the country’s largest company and a major chipmaker, posted a 7% rise, while SK Hynix, another leading memory producer, climbed 4.9%. In Japan, the Nikkei 225 advanced 0.9% to 69,368.30. Tokyo Electron fell 2.5%, whereas memory maker Kioxia jumped 6.6%. Hong Kong’s Hang Seng climbed 1.7% to 23,444.45, and Shanghai’s Composite index added 0.7% to 4,056.81. Taiwan’s Taiex slipped 0.6%, and Australia’s S&P/ASX 200 gained 1.3% to 8,834.90.
U.S. markets closed on Friday for the Independence Day holiday, but the preceding day’s trading set the stage for the Asian session. The Dow closed at 52,900.07, its highest level yet, up 1.1%. The S&P 500 finished virtually unchanged at 7,483.24, while the Nasdaq composite fell 0.8% to 25,382.67.
The mixed outcome for AI‑related stocks was driven by a sharp decline in several chip names. Nvidia, whose market capitalization is close to $4.7 trillion, fell 1.4%. Micron Technology, which recently reached a $1 trillion valuation, dropped 5.5% after a 10.6% fall the day before. Lam Research fell 10.2%. These moves were attributed to concerns that the high valuations reached during the AI boom may not be sustainable.
In contrast, crypto‑related shares benefited from a rebound in Bitcoin, which rose roughly 2% after a dip to near its lowest level since 2024. Robinhood Markets gained 3.8%, and Coinbase Global rose 3.9%.
Oil prices also supported the market. Brent crude was up 0.6% at $72.26 a barrel, while U.S. benchmark crude rose 0.5% to $69.05. The dollar weakened to 161.17 yen, and the euro edged up to $1.1439.
The U.S. jobs report for June added 57,000 positions, below the 100,000 expected by economists. According to the report, the slower hiring pace could ease inflationary pressure, especially as oil prices have fallen to levels not seen since before the 2026 Iran war. A softer inflation outlook may reduce the need for further Federal Reserve rate hikes, which could support equity valuations.
The AI chip market remains a key driver of semiconductor activity. A report by Vox Booster estimates the global AI chip market at $107 billion in 2026, with a projected rise to $592 billion by 2033, reflecting a compound annual growth rate of 27.7%. Another analysis by Coherent Market Insights projects the market to reach $592 billion by 2033, while a tickeron report suggests the AI chip market could hit $1.3 trillion in 2026, driven by demand from hyperscalers and high‑bandwidth memory.
Nvidia’s dominance in AI GPUs—controlling more than 80% of the market for GPUs used in training and deploying AI models—continues to underpin its valuation. Micron’s focus on high‑bandwidth memory (HBM) and flash storage also positions it to benefit from AI data‑center demand.
Overall, the Asian rally underscored the resilience of markets amid geopolitical and economic uncertainties. While AI‑related stocks faced short‑term pressure, the broader backdrop of record U.S. equity gains, a modest jobs report, and easing oil‑price‑driven inflation created a supportive environment for global investors.
The next key data releases include the U.S. inflation report and the Federal Reserve’s policy meeting, both of which could influence market sentiment in the coming weeks.
The upturn was driven by a blend of solid corporate earnings, a rebound in oil prices, and a modest U.S. jobs report that could temper inflation expectations.
In South Korea, the Kospi index recovered from an almost 8% drop the previous day, gaining 2.8% to 7,863.22. Samsung Electronics, the country’s largest company and a major chipmaker, posted a 7% rise, while SK Hynix, another leading memory producer, climbed 4.9%. In Japan, the Nikkei 225 advanced 0.9% to 69,368.30. Tokyo Electron fell 2.5%, whereas memory maker Kioxia jumped 6.6%. Hong Kong’s Hang Seng climbed 1.7% to 23,444.45, and Shanghai’s Composite index added 0.7% to 4,056.81. Taiwan’s Taiex slipped 0.6%, and Australia’s S&P/ASX 200 gained 1.3% to 8,834.90.
U.S. markets closed on Friday for the Independence Day holiday, but the preceding day’s trading set the stage for the Asian session. The Dow closed at 52,900.07, its highest level yet, up 1.1%. The S&P 500 finished virtually unchanged at 7,483.24, while the Nasdaq composite fell 0.8% to 25,382.67.
The mixed outcome for AI‑related stocks was driven by a sharp decline in several chip names. Nvidia, whose market capitalization is close to $4.7 trillion, fell 1.4%. Micron Technology, which recently reached a $1 trillion valuation, dropped 5.5% after a 10.6% fall the day before. Lam Research fell 10.2%. These moves were attributed to concerns that the high valuations reached during the AI boom may not be sustainable.
In contrast, crypto‑related shares benefited from a rebound in Bitcoin, which rose roughly 2% after a dip to near its lowest level since 2024. Robinhood Markets gained 3.8%, and Coinbase Global rose 3.9%.
Oil prices also supported the market. Brent crude was up 0.6% at $72.26 a barrel, while U.S. benchmark crude rose 0.5% to $69.05. The dollar weakened to 161.17 yen, and the euro edged up to $1.1439.
The U.S. jobs report for June added 57,000 positions, below the 100,000 expected by economists. According to the report, the slower hiring pace could ease inflationary pressure, especially as oil prices have fallen to levels not seen since before the 2026 Iran war. A softer inflation outlook may reduce the need for further Federal Reserve rate hikes, which could support equity valuations.
The AI chip market remains a key driver of semiconductor activity. A report by Vox Booster estimates the global AI chip market at $107 billion in 2026, with a projected rise to $592 billion by 2033, reflecting a compound annual growth rate of 27.7%. Another analysis by Coherent Market Insights projects the market to reach $592 billion by 2033, while a tickeron report suggests the AI chip market could hit $1.3 trillion in 2026, driven by demand from hyperscalers and high‑bandwidth memory.
Nvidia’s dominance in AI GPUs—controlling more than 80% of the market for GPUs used in training and deploying AI models—continues to underpin its valuation. Micron’s focus on high‑bandwidth memory (HBM) and flash storage also positions it to benefit from AI data‑center demand.
Overall, the Asian rally underscored the resilience of markets amid geopolitical and economic uncertainties. While AI‑related stocks faced short‑term pressure, the broader backdrop of record U.S. equity gains, a modest jobs report, and easing oil‑price‑driven inflation created a supportive environment for global investors.
The next key data releases include the U.S. inflation report and the Federal Reserve’s policy meeting, both of which could influence market sentiment in the coming weeks.
