Asian stocks climb, led by gains in technology

Investors were focused on developments in China, where the central bank held its benchmark Loan Prime Rates steady on Monday

Asian stock markets climbed in broad-based buying on Monday, led by gains in technology shares and chipmakers amid renewed optimism around artificial intelligence, while investors assessed China’s decision to keep key lending rates unchanged.

Major U.S. stock indices ended mixed last week, while futures tied to them edged higher during Asia hours on Monday.

Chipmakers, which had come under pressure amid fears that capital expenditure could outpace near-term returns, recovered as investors judged that demand linked to artificial intelligence and data centres remains resilient.

Nikkei 225 jumped 2%, while the broader TOPIX index gained 0.8%.

Advantest Corp rose over%, while SoftBank Group climbed more than 5%.

In Seoul, the KOSPI also added 2%, powered by gains in heavyweight chipmakers Samsung Electronics and SK Hynix Inc.

Shanghai Composite rose 0.6%, while the Shanghai Shenzhen CSI 300 gained 0.8%.

Hang Seng index edged up 0.3%, with Hang Seng TECH sub-index advancing 0.7%.

Elsewhere in Asia, S&P/ASX 200 climbed 1%, while Straits Times Index gained 0.7%.

Futures tied to Nifty 50 ticked up 0.1%.

Investors were also focused on developments in China, where the central bank held its benchmark Loan Prime Rates steady on Monday.

The People’s Bank of China kept the one-year LPR, which influences corporate loans, and the five-year LPR, a reference rate for mortgages, unchanged, in line with market expectations.

The decision signalled a preference for policy stability as authorities balance the need to support growth with concerns over financial risks.

With the year-end holiday period approaching, trading volumes are expected to thin, but investors are seen continuing to favour technology and AI-linked stocks, keeping markets sensitive to moves on U.S. stock market.