Asian Semiconductor Rally Propels Taiwan and South Korea Indexes to Record Levels

Asian equity markets focused on semiconductor manufacturers moved higher on Friday after the United States and Taiwan reached a trade agreement that pairs lower reciprocal tariffs with large-scale investment pledges. The arrangement spurred buying across the sector and lifted benchmark indexes in Taipei and Seoul to fresh all-time highs.

Under the deal announced late Thursday, Taiwanese chipmakers agreed to allocate at least $250 billion toward expanding manufacturing capacity in the United States. In return, Washington will reduce a range of levies on technology goods imported from the island. Market participants interpreted the accord as a significant boost to cross-border supply-chain stability and an incentive for corporate capital spending.

The Taiwan Weighted Index advanced 1.94% to close at a record 31,408.70, marking the strongest performance among major Asian markets for the session. Industry bellwether Taiwan Semiconductor Manufacturing Co. climbed 2.96% after reporting another record quarter earlier in the week. The company also told investors it intends to lift capital expenditures in 2026 to a range of $52 billion to $56 billion, reinforcing expectations of sustained demand for advanced nodes.

In South Korea, the Kospi rose 0.9% to a historic high of 4,840.74, extending its winning streak to 11 consecutive sessions. The technology-oriented rally was supported by heavyweight constituents Samsung Electronics and SK Hynix, which gained 3.47% and 0.93%, respectively. The country’s small-cap benchmark, the Kosdaq, added 0.36% to 954.59.

Japanese equities lagged the regional trend. The Nikkei 225 slipped 0.32% to 53,936.17, while the broader Topix declined 0.28% to 3,658.68. Shares of investment conglomerate SoftBank Group, which holds positions in several semiconductor-related firms including designer Arm, fell 1.01% after reversing earlier intraday gains.

Australia’s S&P/ASX 200 edged up 0.48% to 8,903.90, posting its fifth consecutive positive session and benefiting from strength in technology and resources counters. Elsewhere, Hong Kong’s Hang Seng Index shed 0.48% during the final hour of trading, and mainland China’s CSI 300 dipped 0.41% to 4,731.87. State-linked foundry SMIC outperformed the broader Chinese market, advancing 2.39%.

Gains in Asia followed a constructive lead from Wall Street. Overnight, the Dow Jones Industrial Average rose 0.60%, the S&P 500 added 0.26%, and the Nasdaq Composite improved 0.25%. U.S. bank shares also moved higher after stronger-than-expected quarterly results. Goldman Sachs climbed more than 4% after reporting fourth-quarter earnings that beat analyst forecasts, and Morgan Stanley jumped nearly 6% as its wealth-management division delivered higher revenue and profit. Both stocks touched new 52-week peaks.

Imagem: imagem internet 38

U.S. macroeconomic data contributed to the positive sentiment. Initial jobless claims for the week ended January 10 totaled 198,000, below the 215,000 consensus estimate compiled by economists. The figures, released by the U.S. Department of Labor, pointed to continued resilience in the labor market and helped reinforce expectations for steady consumer demand.

Market analysts noted that the combination of the U.S.–Taiwan tariff reduction and the sizeable investment commitment has the potential to reshape global semiconductor supply chains. While the accord still requires implementation details, traders on Friday positioned for increased capacity in North America and a possible easing of geopolitical tension surrounding critical chip production.

Beyond equities, currency markets were relatively subdued. The New Taiwan dollar strengthened modestly against the U.S. dollar following the announcement, while the South Korean won was little changed. Government bond yields across the region moved within narrow ranges, reflecting a wait-and-see stance ahead of forthcoming central bank policy meetings.

Looking ahead, investors will monitor further disclosures on the planned capital allocations by Taiwanese firms, as well as any response from other major producers in Japan and the mainland. Scheduled earnings reports from additional chipmakers next week are expected to provide guidance on order visibility and inventory trends for the first half of 2025.

Crédito da imagem: I-HWA CHENG/AFP via Getty Images