Most Asian stocks rose on Tuesday, with Japan and South Korea leading gains due to strength in major technology stocks, while Chinese shares declined on new U.S. export restrictions.
The Japanese Nikkei 225 and South Korean KOSPI both hit record closing highs on a rally in heavyweight tech stocks, driven by optimism over artificial intelligence.
Gains in the tech sector came as investors repositioned following Washington’s latest export restrictions targeting 140 Chinese companies, aimed at cutting China’s access to advanced chips and equipment vital for AI. The restrictions are expected to benefit global semiconductor players outside China.
Japan’s Nikkei 225 jumped 1.6%, while the Korean KOSPI rose 1.6%, with technology and industrial sectors contributing significantly. Tech majors Tokyo Electron, Advantest, and SoftBank gained over 3% each.
South Korean chip firms, such as Samsung Electronics and SK Hynix, also surged, with gains of 1% and 1.5%, respectively. Indonesia’s Jakarta Composite Index climbed 1.4%, while Thailand’s SET Index was 0.8% higher, and Australia’s S&P/ASX 200 was up 0.7%.
However, Chinese stocks bucked the trend, with the Shanghai Composite Index falling 0.3%, and the Shenzhen Composite Index slightly lower. Hong Kong’s Hang Seng Index dropped 0.4%. The latest U.S. restrictions reportedly included export bans on Chinese chip equipment firms like NAURA Technology and Piotech, causing their stocks to plummet over 4% each.
The U.S. is planning to place additional restrictions on Semiconductor Manufacturing International Corp, which is already on the U.S. Entity List. Hong Kong-listed SMIC shares fell 2.3%. Markets are closely watching for updates on U.S.-China trade relations, with incoming U.S. President Donald Trump having vowed to impose additional tariffs on Chinese goods and threatened to impose sanctions on the BRICS group of nations.
