Japan Stocks Keep Surging, Asia Shares Follow Suit

Asian shares tracked Tokyo higher on Monday as AI hype helped the tech sector ahead of a week brimming with central bank meetings, major economic data, and corporate earnings, Wayne Cole reported for Reuters.

Chipmakers, including Nvidia and Advanced Micro Devices, were among the beneficiaries of the AI-driven rally. I Photo: AMD Facebook

Chip stocks have been on a roll since Taiwan Semiconductor Manufacturing (TSMC) upgraded its profit outlook last week on booming demand for high-end chips used in AI applications.

That helped send the Nikkei up 1.2% to a fresh 34-year peak and brought gains for January to 8.7%.

Chipmakers, including Nvidia and Advanced Micro Devices, were among the beneficiaries of the AI-driven rally.

Nasdaq futures extended their rally with gains of 0.7%, while S&P 500 futures firmed 0.3%. EUROSTOXX 50 futures jumped 1.0%, and FTSE futures 0.5%. MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.5%, after taking a drubbing last week.

The index has been pressured by weakness in China's markets, which hit five-year lows last week and sparked speculation that state funds were having to support stocks. Beijing still seems reluctant to deliver aggressive stimulus, with the central bank again skipping a rate cut in its market operations on Monday.

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