Strong AI Demand Lifts Japan and South Korea Stocks to Record Closes

Continued growth in global AI infrastructure investment and strong demand for chipmakers and AI-related companies have put the technology-heavy Japanese and South Korean markets in the spotlight for investors. Meanwhile, the United States and Iran remain at odds over Tehran’s nuclear program, sanctions relief and shipping through the Strait of Hormuz. The record highs in Japan and South Korea suggest that the AI investment cycle has temporarily outweighed geopolitical risks.

On June 1, South Korea’s KOSPI closed 3.68% higher at 8,788.38, while Japan’s Nikkei 225 gained 0.91% to finish at 66,934.33, both setting record closing highs. Iran’s chief negotiator warned on May 31 that Tehran would not sign an agreement unless its rights were fully guaranteed. AFP reported that markets including Taipei and Hong Kong also closed higher that day, while Shanghai, Sydney and Kuala Lumpur declined.