Microsoft and Amazon's latest earnings reports eased market concerns about a slowdown in AI investment, leading to a strong rebound in Asian tech stocks. The semiconductor sector led the gains, adding nearly $1 trillion to the market capitalization of Asian stocks in a single day, and improving risk sentiment.

Earnings reports drive a rebound in semiconductor stocks

The turning point in market sentiment came from Wall Street. Microsoft reported 27% growth in cloud revenue, adding approximately $450 billion to its market capitalization in a single day. Amazon's stock rose nearly 10% after AWS reported its fastest growth in 18 quarters. These two earnings reports eased investor concerns about a slowdown in spending on AI infrastructure.

The optimism then spread to Asian chip stocks. South Korean stocks surged, with SK Hynix hitting its daily limit and Samsung Electronics also rising significantly. Taiwanese stocks also rebounded, with TSMC rising 10%. Japanese chip testing equipment company Advantest also strengthened along with the sector.

• South Korea's KOSPI rose 17.9% in a single day.
• Taiwan's TAIEX rose by more than 8%.
• The Philadelphia Semiconductor Index rose more than 8% overnight.

Japanese interest rates remain unchanged.

In addition to the AI earnings report, the Bank of Japan's decision to keep interest rates unchanged also provided additional support to the market. Japan's unemployment rate remained at 2.5%, further easing investor concerns about the economy.

Driven by multiple factors, Asian markets experienced a historic rebound. However, this recovery did not completely erase the losses from July. South Korea's KOSPI still fell 22.19% that month, marking one of its worst monthly performances since the 1997 Asian financial crisis, and remains nearly 30% below its June high.

Risk appetite is transmitted to the crypto market

A rebound in tech stocks typically improves trading sentiment for high-risk assets, and the crypto market was no exception. The report noted that Bitcoin traded around $63,800, Ethereum around $1,888, BNB rose slightly, Solana and XRP saw limited movement, and Cardano performed relatively strongly.

If market confidence in AI and technology sectors continues to recover, institutional funds may flow back into higher-risk assets, potentially benefiting the crypto market. Going forward, corporate earnings reports, central bank policies, and semiconductor demand will remain key market focuses.