Hong Kong shares outperformed on strength in tech and automobile names, while South Korea hit a record high on strength in chipmakers

Asian stocks were a mixed bag on Monday, while holidays in China and Japan kept trading volumes thin.

Hong Kong shares outperformed on strength in tech and automobile names, while South Korea hit a record high on strength in chipmakers, especially Samsung and SK Hynix.

Hang Seng index was the best performer in Asia on Monday, surging 2.7% as bargain buyers stepped in after steep losses last week.

Tech, industrials, and auto stocks were the best performers on the index, with investors seen seeking out plays with more exposure to artificial intelligence.

In Hong Kong, focus was also on mainland China after the week-long Lunar New Year holiday. The event usually acts as a major economic boost for China, with markets set to reopen on Tuesday.

AI remained a key point of focus, with companies such as NVIDIA Corporation set to report later this week.

AI was a major support point for South Korean markets, with the KOSPI adding more than 1% to a record high.

Chipmakers Samsung Electronics Co Ltd and SK Hynix were among the biggest boosts to the index, amid growing signs that the two will benefit greatly from AI-fuelled demand for advanced memory chips.

A report last week said Samsung was likely poised for a major deal with Nvidia to supply advanced memory chips for the latter’s AI processors. The stock hit a record high on Monday.

Broader Asian stocks mostly moved in a flat-to-low range, with holidays in China and Japan also keeping trading volumes low.

Among other Asian markets, Straits Times index added 0.4%. ASX 200 dropped 0.5%, while futures for Nifty 50 index declined 0.4% in morning trade.