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Asian Stocks Rise on SK hynix's AI Chip Success, Rekindling Tech Sector

South Korea's Kospi led gains across most Asian markets as SK hynix's record-breaking US share sale rekindled the tech sector.

By Staff Correspondent
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Asian stocks rally as SK hynix breathes life back into AI trade | Business
BSS

South Korea's Kospi led gains across most Asian markets on Friday as a record-breaking US share sale by chip titan SK hynix breathed fresh life into the tech sector after weeks of selling. The breathtaking $26.5 billion listing by SK provided much-needed affirmation to investors that the AI boom remains on course, despite lingering worries about extended valuations and eye-watering capital spending.

Record-Breaking Listing

SK hynix set a price of $149 for each American depositary share (ADS) -- slightly more than its Seoul closing price Thursday -- ahead of its debut on the Nasdaq on Friday. That meant it had raised $26.5 billion, the most for a US listing by a foreign firm. The company, a supplier of advanced memory chips to industry behemoth Nvidia, has seen profits skyrocket thanks to the global race to build artificial intelligence data centres.

Market Reaction

Seoul's Kospi jumped more than four percent at one point Friday though SK hynix was up just one percent, having added around five percent Thursday. Samsung was four percent higher. Tokyo also saw strong gains, with tech investment giant SoftBank piling on more than 10 percent while Tokyo Electron and Advantest were four percent up. Hong Kong, Shanghai, Singapore, Sydney and Jakarta joined the advances in early trade.

Oil Market Impact

The mood on oil trading floors was also a little less tense than earlier in the week as investors become less concerned that the recent US-Iran flare-up over the Strait of Hormuz would reignite their war. Both main crude contracts edged up slightly Friday, having dropped around two percent the day before, with analysts pointing out that more oil is produced outside the Gulf region, tempering the impact of disruptions.

Why This Matters

The surge in Asian stocks driven by SK hynix's successful listing highlights the ongoing investor confidence in the AI sector. For Bangladesh, this could mean increased opportunities for tech investments and partnerships, potentially driving growth in local tech industries. The positive market sentiment may also encourage more foreign investments in the region, fostering economic development.

Source: BSS

FAQ

What was the amount raised by SK hynix in its US listing?
SK hynix raised $26.5 billion in its US listing, the most for a US listing by a foreign firm.
How did Asian markets react to SK hynix's listing?
Asian markets, particularly South Korea's Kospi, saw significant gains. Seoul's Kospi jumped over four percent, and other markets like Tokyo, Hong Kong, and Shanghai also experienced rises.

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