Nikkei 225 Rises on Hormuz Breeze...Are Asian Semiconductor Stocks Reviving?

▲ Nikkei 225 / AI generated image

The Nikkei 225 surged more than 3% as expectations for negotiations between Iran and the U.S. over the Strait of Hormuz stimulated Asian semiconductor stocks.

According to cryptocurrency specialized media BeInCrypto on August 5 (local time), the Nikkei 225 rose 3.34% to 66,090 in Wednesday's session. The Japanese stock market, which had been suppressed by the recent intervention of the Bank of Japan in the foreign exchange market, rebounded on the strength of the U.S. stock market and expectations for the reopening of the Strait of Hormuz.

The rally was led by semiconductor stocks. SoftBank Group surged more than 10%. Tokyo Electron rose 3.64%, Advantest 7%, and Kioxia 6.34%. Andrew Jackson, a strategist at Ortus Advisors, analyzed that the strength of U.S. semiconductor stocks reinforced the bullish outlook for AI-related stocks in Asia.

South Korean semiconductor stocks also showed strong gains. SK Hynix jumped approximately 6%, and Samsung Electronics rose more than 4% in early trading. SK Hynix agreed to jointly develop High Bandwidth Flash (HBF), a next-generation memory standard for AI servers, with SanDisk (SNDK). The market interpreted this collaboration as a sign that the growth trend in the AI memory supply chain is continuing.

U.S. Treasury Secretary Scott Bessent said the previous day, “I expect an agreement to reopen the Strait of Hormuz to emerge today or tomorrow.” The remarks came a day after U.S. President Donald Trump announced negotiations regarding the Strait of Hormuz. As expectations for de-escalation grew, international oil prices fell, and the cost burden on energy-import-dependent countries like Japan and South Korea also decreased.

In the U.S. stock market, the S&P 500 and the Dow Jones Industrial Average closed at all-time highs. The Nasdaq Composite led the gains, rising 2.59%. Morgan Stanley upgraded its investment opinion on the South Korean stock market, and the market is closely watching for confirmation of the U.S.-Iran agreement on the Strait of Hormuz.

[Article Summary]

-The Nikkei 225 rose 3.34% on expectations for negotiations between Iran and the U.S. over the Strait of Hormuz.

-SoftBank Group surged more than 10%, and SK Hynix and Samsung Electronics also showed strength.

-Falling international oil prices and rising U.S. semiconductor stocks boosted investor sentiment in Asian markets.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*