Stocks in Japan, South Korea, and Taiwan ended last week at record highs. The rally reflected growing confidence that artificial intelligence growth and U.S. rate cuts will support Asia’s leading chipmakers, including Taiwan Semiconductor Manufacturing Company (TSM). Notably, shares of SK Hynix, a key partner of Nvidia (NVDA), climbed 7% to an all-time high after the company reported progress in its AI chip development. That surge lifted peers across the region. Meanwhile, Japan and Taiwan also attracted strong inflows as investors placed new bets on the global semiconductor supply chain.
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At the same time, weaker U.S. job growth in August increased expectations for a Federal Reserve rate cut next week. A softer U.S. dollar, which is down about 10% so far this year against major peers, has further boosted returns for international investors in Asian equities.
Governance Reforms and Global Flows
Policy moves have added momentum. In July, South Korea amended its Commercial Code to clarify directors’ duties to shareholders, thereby encouraging greater foreign participation in its market. In Japan, ongoing corporate reform and a search for opportunities outside the U.S. following the April tariff news have driven global buyers back to local stocks.
As a result, the MSCI Asia Pacific Index is now trading near record highs. It is also outperforming the MSCI World benchmark by the widest margin in eight years. By contrast, the S&P 500 (SPY) has reached fresh records but continues to lag other developed markets, signaling that investors are shifting more capital toward Asia and Europe.
Analysts caution that U.S. technology companies face rising costs as they scale up investment in AI infrastructure, which could limit gains for their valuations. Meanwhile, Japan’s $3.5 trillion net foreign investment position could start to return home if the yen steadies. Such a move would give added support to Asia’s rally in the months ahead.
By using TipRanks’ Comparison Tool, we’ve assembled and compared notable Asian stocks trading on Wall Street, alongside Nvidia, which makes a cameo in this piece. This helps all investors gain a broader perspective on each stock and how it compares to its peers.
