Asian Markets Advance as Semiconductor Shares Rally on AI Demand
SINGAPORE, November 11, 2026, ZEX PR WIRE, Asian equity markets moved higher on Wednesday as semiconductor stocks gained on continued demand for artificial intelligence infrastructure, although regional performance remained uneven. Taiwan, South Korea and Japan led the advance, while shares in Hong Kong and mainland China faced pressure. The regional rally followed a weaker session on Wall Street, where stronger than expected US inflation data renewed concerns about the direction of interest rates.
Taiwan’s Taiex rose 2.1%, supported by a 3.1% gain in Taiwan Semiconductor Manufacturing Company. South Korea’s Kospi advanced 1.6%, while Japan’s Nikkei added 0.8%. The gains reflected investor interest in companies supplying advanced chips and related components for AI computing. By contrast, Hong Kong and mainland Chinese markets declined as investors assessed technology sector valuations and the outlook for domestic consumption.
AI demand supports chipmakers
The semiconductor sector received additional support from TSMC’s October revenue report, which showed a sharp increase in sales compared with the previous year. The figures reinforced the view that demand for advanced manufacturing capacity remains strong, particularly as technology companies continue to invest in AI models, cloud infrastructure and data centres.
South Korean and Japanese technology suppliers also participated in the advance. However, the gains were not uniform across the region, highlighting the difference between markets with significant exposure to semiconductor manufacturing and those more affected by domestic economic concerns.
US inflation remains a market risk
The positive performance in parts of Asia came after US equities retreated on Tuesday. The S&P 500 declined 0.4%, the Dow Jones Industrial Average fell 0.3% and the Nasdaq Composite lost 0.7%. The decline followed October inflation figures that exceeded economists’ expectations, lifting Treasury yields and strengthening expectations that the Federal Reserve may maintain or tighten monetary policy.
The US 10-year Treasury yield approached 4.99%, adding pressure to equity valuations. Higher borrowing costs can weigh particularly heavily on growth companies because investors place greater importance on the future earnings expected from these businesses.
Regional markets face different pressures
Chinese and Hong Kong shares remained under pressure as investors considered the implications of US interest rate expectations, technology competition and uncertainty surrounding AI valuations. Market participants were also looking toward Singles’ Day sales figures for additional evidence about Chinese consumer demand.
The contrasting performance across Asian exchanges illustrates how the AI investment cycle continues to influence regional markets, while macroeconomic developments in the United States remain a significant external factor. The coming sessions will show whether semiconductor strength can sustain the broader regional recovery.
