SEOUL, November 26 (AJP) - Asian shares closed broadly higher Wednesday, lifted by renewed optimism over artificial intelligence following the debut of Google’s “Gemini 3.0” model. While sector performance varied across the region, sentiment improved as investors increasingly dismissed the notion of an AI bubble.
The benchmark KOSPI climbed 2.67 percent to 3,960.87. Easing anxiety over the AI sector and direct market intervention by foreign exchange authorities served as the day’s strongest catalysts.
Institutional investors led the rally, net buying 1.23 trillion won ($838 million). The surge was interpreted as a result of the National Pension Service and major brokerages stepping up domestic equity purchases after FX authorities urged reduced reliance on overseas assets. Foreign investors also turned net buyers, adding 516 billion won.
Retail investors, however, sold 1.8 trillion won, reflecting both profit-taking and skepticism over the government’s use of pension funds in its stock and currency defense operations.
Despite intervention, the Korean won closed at 1,471.2 won per dollar, down 5 won as of 4:45 p.m., suggesting FX measures have yet to meaningfully reverse the currency’s slide.
Treasury yields fell across the curve amid the absence of tangible momentum toward exchange-rate normalization. The 3-year yield fell 2.3 basis points to 2.878 percent, while the 10-year yield dropped 2.2 basis points to 3.242 percent.
Market heavyweights advanced, though with varying strength. Samsung Electronics posted the strongest gain, rising 3.52 percent to 102,800 won after drawing investor attention through its AI semiconductor supply partnership with Broadcom, a key collaborator of Alphabet.
SK hynix reversed early losses and finished 0.96 percent higher at 524,000 won, though its positioning as an Nvidia partner — rather than an Alphabet-linked supplier — capped its upside.
AI component makers rallied, with Samsung Electro-Mechanics jumping 6.42 percent to 257,000 won.
Prospects for a Ukraine war ceasefire fueled a surge in reconstruction-related plays. Hyundai Engineering & Construction rose 7.73 percent to 65,500 won, Samsung C&T gained 3.28 percent to 236,000 won, and nuclear energy firm Doosan Enerbility advanced 5.71 percent to 77,700 won.
ESS and battery stocks also enjoyed a sharp rebound on renewed confidence in AI-led demand. Samsung SDI rose 7.03 percent to 304,500 won, and LG Energy Solution climbed 5.32 percent to 435,500 won.
Japan’s Nikkei 225 rose 1.85 percent to 49,559.07.
Gains in semiconductor equipment bellwethers were more muted: Advantest rose 1.99 percent to 19,460 yen ($124.58), and Tokyo Electron inched up 0.23 percent to 31,170 yen.
Ibiden, a key Nvidia partner, fell 3.75 percent to 10,905 yen after plunging more than 7 percent earlier.
SoftBank Group rebounded 5.65 percent to 16,260 yen after a sharp drop the previous day tied to its OpenAI exposure rather than Alphabet’s ecosystem.
Taiwan’s TAIEX also joined the rally, rising 1.85 percent to 27,409.54.
MediaTek — reportedly involved in designing Alphabet’s next-generation AI chip — surged 9.7 percent to 1,300 Taiwan dollars ($41.5), while TSMC rose 1.77 percent to 1,440 Taiwan dollars on expectations of increased TPU manufacturing.
In mainland China, the Shenzhen market led gains with the SZSE Component rising 1.02 percent to 12,907.83, driven by a surge in communication equipment stocks on expectations of increased state investment in information infrastructure. Shandong Zhongji Electrical jumped 13.21 percent to 543 yuan ($76.6).
The Shanghai Composite slipped 0.15 percent to 3,864.18, weighed down by weak domestic consumption. The index’s heavy weighting toward state-owned enterprises, financial firms, and consumer staples amplified the impact of China’s slowdown. China’s 10-year Treasury yield fell to 1.83 percent on Nov. 21 — below Japan’s 1.84 percent — underscoring prolonged economic malaise.
Hong Kong’s Hang Seng Index erased early gains and was trading nearly flat at 25,930 as of 4:45 p.m., up just 0.14 percent.
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