SEOUL, February 09 (AJP) - Reinforced political leadership in Japan and renewed optimism over artificial intelligence helped refuel Asian equities on Monday, reversing much of last week’s sharp selloff.
Japan’s Nikkei 225 jumped after the ruling Liberal Democratic Party secured a landslide election victory, strengthening support for Prime Minister Sanae Takaichi and her “strong Japan” agenda.
The Nikkei closed up 2.9 percent at 56,363.9, after briefly breaking above the 57,000 mark.
The upbeat mood in Tokyo set the tone across the region, lifting Korean equities in a broad-based rebound.
South Korea’s benchmark KOSPI surged 4.1 percent to 5,298.04, while the KOSPI 200 jumped 4.4 percent to 780.9, marking one of the strongest daily gains in recent months. The tech-heavy KOSDAQ also advanced sharply, rising 4.3 percent to 1,127.6.
Buying was driven primarily by foreign and institutional investors.
On the main board, overseas investors bought 441.5 billion won ($302 million), while institutions added 2.71 trillion won. Retail investors took profits, selling 3.30 trillion won. A similar pattern emerged on the KOSDAQ, where foreigners bought 162.8 billion won and institutions added 484.5 billion won, while individuals sold 605.9 billion won.
Sector-wise, gains were led by electrical equipment, energy and semiconductor shares, as optimism returned to AI, power infrastructure and defense themes.
HD Hyundai Electric jumped 10.8 percent to 931,000 won, standing out among power equipment names.
Semiconductor heavyweights rallied after Jensen Huang, CEO of Nvidia, said artificial intelligence had entered a phase of generating tangible profits, helping revive global AI-related sentiment.
Samsung Electronics climbed 4.9 percent to 166,400 won, while SK hynix advanced 5.7 percent to 887,000 won.
Energy and defense names were also in demand.
Hanwha Solutions surged 13.6 percent to 47,700 won, while Doosan Enerbility rose 7.2 percent to 95,400 won. Hyundai Motor gained 2.3 percent to 478,000 won.
Hanwha Aerospace added 1.02 percent to 1,193,000 won after reporting record results.
The company posted 2025 revenue of 26.61 trillion won and operating profit of 3.03 trillion won, up 137 percent and 75 percent year on year, respectively, marking its third consecutive year of record earnings. Growth was driven by its land defense and aerospace businesses, as well as the full-year consolidation of Hanwha Ocean.
Among a handful of losers, Sampyo Cement slid 14.2 percent to 16,860 won, while EM&I plunged 21 percent to 1,084 won and Koiz fell 16.6 percent to 3,720 won.
In currency trading, the won strengthened modestly, closing at 1,460.6 per dollar, up 0.3 percent from the previous session, as improved risk sentiment supported Asian currencies.
Elsewhere in the region, China’s Shanghai Composite Index rose 1.4 percent to 4,123.1, extending gains alongside the broader Asian rally.
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