Despite thin volumes, risk appetite was supported by strength in technology and semiconductor stocks, which extended gains from the end of last year

Asian stock markets opened the new year higher on Friday, with Hong Kong and South Korea leading gains on a rally in technology shares, while holiday closures in some markets kept trading volumes subdued.

Markets in Japan and mainland China remained closed for holidays. Despite thin volumes, risk appetite was supported by strength in technology and semiconductor stocks, which extended gains from the end of last year.

Most Asian equity markets ended 2025 with sharp gains, driven largely by a powerful rally in technology stocks as demand for artificial intelligence applications, data centres and advanced chips accelerated.

Hong Kong shares climbed 2% on Friday, led by technology names and internet firms. The Hang Seng index had closed 2025 with more than 27% annual gains, supported by self-reliance bets in the Chinese chip-making industry.

KOSPI gained 1.3%, with Samsung Electronics and SK Hynix climbing between 2.5% and 4%.

The Kospi index was among the best-performing major markets globally in 2025, gaining more than 75%, buoyed by robust demand for semiconductors used in artificial intelligence and high-performance computing.

Globally, technology stocks found renewed momentum toward the end of the year as optimism around artificial intelligence intensified. Strong gains in U.S. tech shares in late December helped lift sentiment across Asia, reinforcing the view that AI investment remains a key driver of equity performance going into 2026.

Elsewhere, markets were largely subdued amid holiday-thinned trading.

S&P/ASX 200 edged 0.2% higher, while Straits Times Index added 0.4%.

Futures tied to India’s Nifty 50 also rose 0.2%.