AI-Driven Asian Stock Surge Adds $1 Trillion in Value
The Asian stock market has staged one of its strongest rebounds in history following blockbuster earnings from Microsoft and Amazon, sparking a $1 trillion surge in value.
The AI boom saw semiconductor stocks lead the rally after investors regained confidence that AI spending remains strong despite recent valuation concerns. Microsoft added roughly $450 billion in market value after reporting 27% growth in cloud revenue to $593 billion, while Amazon surged nearly 10% after AWS recorded its fastest growth in 18 quarters.
The sharp recovery has also improved sentiment across risk assets, including cryptocurrencies. South Korea's KOSPI jumped 17.9%, its biggest single-day gain on record, with SK Hynix surging 30% and Samsung Electronics climbing 27%. The Bank of Japan kept interest rates unchanged, while Japan's unemployment rate remained stable at 2.5%, adding further support to markets.
Despite Friday's explosive recovery, July remained extremely difficult for Asian stock. The KOSPI still ended the month down 22.19%, marking its worst monthly performance since the 1997 Asian Financial Crisis, and remains nearly 30% below its June peak after the AI-led selloff.