SoftBank jumps 10% as Asia tech stocks track Wall Street AI rally

Asian technology stocks experienced a significant surge on Wednesday, tracking a Wall Street rally that saw major U.S. indexes reach new record highs. SoftBank Group's shares jumped over 10%, while chip equipment manufacturer Tokyo Electron rose by 3.64%. Advantest experienced a 7% increase, and Kioxia, a Japanese memory chipmaker, climbed 6.34%.

In South Korea, SK Hynix gained 6.9%, and Samsung Electronics surged more than 4%. Seoul Semiconductor also saw a 7.6% rise. The market's heightened volatility has been evident, as South Korea's semiconductor-focused sector has alternated between sharp declines and record gains in recent sessions. Ortus Advisors' strategist Andrew Jackson noted in a report on Wednesday that the recent rally in U.S. semiconductor stocks supports a bullish outlook for Asian AI-related companies, citing a surge in chipmakers and infrastructure suppliers overnight.

Jackson anticipates SoftBank to continue its upward trajectory, particularly after Arm Holdings, a majority-owned chip design subsidiary of SoftBank, gained ground due to optimism surrounding higher AI-related data center royalties and plans for central processing units. U.S. stocks saw a strong performance on Tuesday, with the S&P 500 and Dow Jones Industrial Average hitting all-time highs, fueled by solid earnings and a drop in oil prices as hopes grew that the Strait of Hormuz would reopen soon.

The Nasdaq Composite closed at 26,584.99, up 2.59%, led by Palantir Technologies, which surged over 29%. U.S. Treasury Secretary Scott Bessent indicated in an interview on CNBC's "Squawk Box" that a potential deal between Washington and Tehran to reopen the Strait of Hormuz could be reached within days, alleviating concerns over global energy supplies.