Seoul reaches record peak as global stocks trade mixed after Wall Street lull

Seoul’s KOSPI climbed to another record high on Thursday amid mixed trading across global markets, as investors weighed a strong lead from Wall Street against a muted reaction to better-than-expected earnings from chip giant Nvidia.

Asian technology stocks have enjoyed a powerful start to the year as investors reassess their exposure to artificial intelligence. Market focus has shifted toward “upstream” players such as chipmakers, moving away from “downstream” firms that specialise in software and applications.

This rotation reflects growing unease over the vast sums invested in AI and questions about when meaningful returns will materialise, alongside concerns that rapid advances in the technology could disrupt other industries.

Despite the cautious tone, Seoul surged more than three per cent to a new peak, just a day after crossing the 6,000-point mark for the first time. Gains were driven by a 7.1 per cent jump in Samsung Electronics and an 8.2 per cent rise in rival SK Hynix. The Kospi is now up nearly 50 per cent for the year.
Markets in Tokyo also reached fresh records, while Sydney, Wellington, Manila, Bangkok and Jakarta posted gains. By contrast, Hong Kong, Singapore and Mumbai edged lower, with Shanghai and Taipei ending flat. In Europe, London and Frankfurt opened lower, while Paris recorded modest gains.

Investor optimism was somewhat dampened by Nvidia’s earnings report. Although the company posted record revenue of $68.1 billion for the October–December quarter and forecast first-quarter revenue well above expectations, its shares slipped in after-hours trading in New York. Analysts said lofty expectations had left little room for further upside.

Stephen Innes of SPI Asset Management noted that simply beating forecasts is no longer enough for markets. “The market is no longer pricing growth; it is pricing perpetuity,” he said.

Saxo’s Charu Chanana added that investors are now demanding proof of monetisation and disciplined spending, rather than just heavy investment. She said this shift explains why volatility around AI-related stocks could persist even after strong results from industry leaders.
Wall Street futures for all three major indexes were lower after a strong rally the previous day.

In currency markets, the yen recovered some ground against the dollar after reports that Japanese Prime Minister Sanae Takaichi had nominated two academics viewed as policy doves to the board of the Bank of Japan. The move followed earlier reports that she had expressed concerns to central bank governor Kazuo Ueda about further interest rate hikes.

Key market moves
Tokyo – Nikkei 225: Up 0.3% at 58,753.39 (close)
Hong Kong – Hang Seng Index: Down 1.4% at 26,381.02 (close)
Shanghai – Composite: Flat at 4,146.63 (close)
London – FTSE 100: Down 0.3% at 10,774.79
Dollar/Yen: 156.05, down from 156.46
Euro/Dollar: $1.1816, up from $1.1805
Pound/Dollar: $1.3548, down from $1.3554
WTI crude: Up 0.1% at $65.48 per barrel
Brent crude: Up 0.1% at $70.95 per barrel
New York – Dow Jones: Up 0.6% at 49,482.15 (close)