AI Lifts Tokyo and Seoul Stock Markets to Record Highs Despite Middle East Uncertainty

The Nikkei 225 index in Tokyo and the KOSPI in Seoul both reached all-time highs, driven by strong performance in artificial intelligence and semiconductor stocks. Japanese and South Korean tech giants—including Samsung Electronics, SK Hynix, Tokyo Electron, and Advantest—posted significant gains as global demand for AI chips and computing infrastructure accelerates.

The AI industry is witnessing unprecedented investment from tech companies and cloud providers worldwide. US restrictions on technology transfer to China have elevated the importance of production capacity in Japan and South Korea. Both nations are positioned to capture a significant share of global AI infrastructure spending.

While investors acknowledge Middle East tensions and Strait of Hormuz uncertainty could push energy costs higher, the momentum in AI stocks has overshadowed near-term geopolitical concerns. However, analysts warn that sustained oil price spikes could compress tech margins if energy costs rise materially.