Asian stocks rise as tech rally extends

Chipmakers rose on expectations that demand for advanced processors and memory chips will remain robust in 2026

Asian stock markets rose sharply on Monday, kicking off the first full trading week of the new year on a strong note as technology and semiconductor shares extended a powerful rally from year-end.

Wall Street closed last week on a mixed note, and U.S. futures were mostly steady during Asia hours on Monday, with the tech-heavy Nasdaq showing modest gains

Nikkei 225 surged 2.7% to a 2-month high, while the broader TOPIX index climbed 2.1% to a new record high of 3,486.0 points.

Chipmaker Advantest Corp and Tokyo Electron shares leapt over 6%.

KOSPI jumped nearly 3% a record peak of 4,434.27 points. Samsung Electronics and SK Hynix advanced between 3% and 6%.

China’s blue chip Shanghai Shenzhen CSI 300 rose 1.6%, while the Shanghai Composite index gained 1.1%.

Hang Seng index was largely unchanged. It ended nearly 3% higher on Friday.

Chipmakers rose on expectations that demand for advanced processors and memory chips will remain robust in 2026. Asian markets were benefiting from their heavy exposure to the global semiconductor supply chain.

Elsewhere, futures tied to Nifty 50 traded flat.

Straits Times Index gained 0.5%, while S&P/ASX 200 was largely unchanged.

The rally in Asian tech shares stood in contrast to Wall Street’s recent performance. U.S. stock indexes failed to deliver a traditional “Santa Claus” rally at the end of last year, with gains capped by cautious positioning and uneven economic signals.

However, Asian markets found support in the chip sector, where strong momentum carried over into January.

A private survey showed China’s services activity expanded at its slowest pace in six months in December, according to the RatingDog services PMI.

While the index remained in expansionary territory, softer growth in new business highlighted lingering headwinds in the world’s second-largest economy.