KOSPI Breaks 7,700 for the First Time Ever as AI Demand Reshapes Asian Markets

Stock markets in Japan and South Korea opened at new all-time highs on May 11, 2026, extending a strong rally driven by easing geopolitical tensions and surging demand for AI-related technology.

The Nikkei 225 gained around 1% at the open, while South Korea’s KOSPI jumped nearly 4%, marking one of the strongest starts across Asian markets this year. According to market data, Japan’s Nikkei 225 climbed 0.78% to 63,201.36, surpassing its previous record of 62,833 set only days earlier.

Meanwhile, South Korea’s KOSPI surged 3.85% to 7,786.73, breaking above the 7,700 level for the first time ever and leading gains across Asian equities.

Major semiconductor and tech stocks also posted massive gains at the open. Samsung Electronics jumped more than 5%, while SK hynix surged over 8%, with both companies reaching new all-time highs.

AI Boom Is Fueling Asian Markets

A major driver behind the rally continues to be the global artificial intelligence boom.

South Korea recently reported a massive 139% year-on-year increase in semiconductor exports during the first quarter of 2026, fueled largely by rising demand for memory chips powering AI data centers worldwide.

This surge has strengthened investor confidence in Asian semiconductor giants, especially as global tech firms continue expanding AI infrastructure spending.

The rally also reflects how Asian markets are increasingly becoming central players in the global AI supply chain, particularly in semiconductors, chip manufacturing, and advanced hardware.

Geopolitical Optimism Boosts Investor Sentiment

Markets also reacted positively to improving geopolitical developments involving the United States and Iran.

President Donald Trump recently described talks with Iran as “very productive,” raising hopes for a possible agreement that could reduce tensions and improve global market stability.

At the same time, investors are increasingly shifting capital into Asian equities as both a growth opportunity and a relatively safe haven during global uncertainty.

South Korea’s stock market has now surpassed Britain and Canada to become the world’s seventh-largest equity market, highlighting the growing global influence of Asian technology and semiconductor companies.