Japanese and South Korean stock markets open higher and continue to rise, with Samsung Electronics up 5%, and the FTSE China A50 Index futures opening up 0.13%.

On February 19, driven by a rebound in technology stocks and positive U.S. economic data, U.S. stocks performed well overnight, leading to a general rise in Asian markets. Geopolitical tensions pushed oil prices higher, and after posting the largest single-day gain since October last year, crude oil continued its upward momentum.

Australian and Japanese stock markets strengthened, with South Korea’s benchmark index reaching a new all-time high. The previous trading day saw major Wall Street indices close higher, with the S&P 500 up 0.6% and the tech-heavy Nasdaq 100 up 0.8%.

The strong rebound in the technology sector indicates that market concerns over the disruptive impact of artificial intelligence are gradually easing, and investors are entering the market at lows to seize opportunities in stocks with valuations returning to reasonable levels. Paul Stanley, managing partner at Granite Bay Wealth Management, said that the sell-off in software stocks may be “excessive,” as it is largely an instinctive reaction where investors are trying to determine which companies in AI will win and which will lose. He stated:

“While the prospects for AI are very broad, investors should not assume all companies will succeed in the AI space.”

In the currency markets, the dollar rebounded from recent lows, while the yen remained under pressure. The latest Federal Reserve meeting minutes showed clear disagreements among policymakers regarding the future path of interest rates. The minutes hinted that even with the new chair taking office in May, pushing for rate cuts could face significant resistance.

Corpay Asia-Pacific currency strategist Peter Dragicevic said:

“This indicates that the urgency for another rate cut is not high, at least before the current chair (Jerome Powell)’s term ends in May.”

Key market movements are as follows:

The Nikkei 225 opened up 0.57%.
The Seoul Composite rose 3%, hitting a new all-time high.
Samsung Electronics gained over 4%, with reports that it is negotiating a $700 HBM4 price.
The 10-year Japanese government bond yield rose 1 basis point to 2.145%.
The USD/JPY exchange rate remained flat at 154.73 yen per dollar.
Spot gold declined 0.2% to $4,967.93 per ounce.
West Texas Intermediate crude fell 0.1% to $65.12 per barrel.
The Seoul Composite rose 3%, reaching a new all-time high.
Samsung Electronics gained over 4%, with reports that it is negotiating a $700 price for HBM4.

The Seoul Composite in South Korea rose 3%, hitting a record high. Samsung Electronics surged over 4%, with reports of negotiations for HBM4 at $700 per unit.

Dragged down by the recent decline in U.S. Treasuries, Japanese government bond futures continued to weaken. The traditional correlation between the two markets makes it difficult for Japan to shake off external pressures.

Investors are closely watching the upcoming 20-year government bond auction later today, with a scale of about 800 billion yen. Citi strategist Tomohisa Fujiki believes that the upside for ultra-long-term bonds is limited, and demand may only be a short-term phenomenon, expected to gradually fade by the end of March.

The dollar continues to strengthen, putting pressure on the yen. During Thursday’s Asian session, USD/JPY stabilized around 154.6, down from the overwhelming victory in the recent election by Prime Minister Fumio Kishida, which saw the pair at around 152.

On the news front, the Trump administration announced a $36 billion investment project, the first of Japan’s previously pledged $550 billion investment plan to the U.S.

For a long time, the yen has remained weak due to low domestic interest rates and concerns over fiscal deficits. However, recent market optimism about Japan’s economic growth prospects has provided some support for the yen.

ING Global Research Director Chris Turner said:

“Japan’s direct investment in the U.S. will be a key factor to watch this year, which also complicates the USD/JPY trend. The market’s concern is whether this investment will support dollar inflows or if Japan will use its foreign exchange reserves to back new dollar loans to avoid further yen depreciation. Tokyo seems to favor the latter.”

Due to escalating risks of conflict between the U.S. and Iran, gold’s appeal as a safe-haven asset has increased, with prices edging higher in Asian morning trading. Spot gold rose briefly by 0.2%, reaching $4,986 per ounce.

InTouch Capital Markets analysts noted that concerns about a potential U.S.-Iran war are heating up again. Citing media reports, they said that given the bleak prospects for a deal, the Trump administration might prefer conflict with Iran, with the possibility of joint action with Israel being the most likely scenario.

Geopolitical tensions have intensified, and oil prices surged then stabilized. Reports earlier indicated that U.S. military intervention in Iran could occur sooner than expected, reigniting supply concerns.

Wednesday’s close data showed WTI crude oil rose 4.6% to above $65, while Brent crude returned to the $70 mark, reaching a more than two-week high. Axios reported that U.S. military operations could last for several weeks, and Israel is actively pushing plans to overthrow the Iranian regime. The rapid escalation of geopolitical risks is now a dominant short-term driver of oil prices.

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