AI rally lifts Asia's stock benchmark to all-time high as SK Hynix, TSMC, and Samsung surge on semiconductor demand

The MSCI Asia Pacific Index jumped as much as 2.3% on Monday, with tech-heavy benchmarks in South Korea and Taiwan surging more than 4.5% each. SK Hynix shares soared nearly 13% to a record, TSMC's jumped 6.6% to their all-time high, and Samsung's stock jumped more than 5% to a record.

Asia's dominance in semiconductor manufacturing and data infrastructure has made it a key pillar of the AI boom. The region is anchored by three companies providing essential hardware for AI: Taiwan Semiconductor Manufacturing Co. (the world's largest chip foundry), Samsung Electronics Co., and SK Hynix Inc. (South Korea's leading memory makers).

The AI-led surge masks underlying strains in the broader Asian market, with significant divergence across the region. While North Asian markets like Korea and Taiwan are riding the rally, South and Southeast Asian peers such as energy-reliant India, Indonesia, and the Philippines have lagged amid concern that war-led oil price spikes will fuel inflation and weigh on external balances.