ASIA STOCKS: Equities Trade Higher Following Trump's AI-Focused Investment Plan

Asian equities are trading higher today, buoyed by positive sentiment following US President Donald Trump’s announcement of a $100b AI-focused joint venture involving SoftBank Group, OpenAI, Oracle, and others, with a long-term target of $500b. Softer-than-expected trade policies and easing inflationary pressures in the US also supported risk appetite.

• Japanese equities are higher with the Nikkei is 1.5% higher, while the Topix gained 0.9%, driven by AI-related stocks like SoftBank Group (+8.9%) and chip equipment makers such as Disco (+7.2%) and Advantest (+4.3%). Exporters, autos, and financial stocks also performed well amid optimism over BOJ rate hike expectations.
• South Korea's KOSPI is 0.65% higher, supported by gains in tech, battery, and bio stocks. Naver (+1.96%), LG Energy Solution (+0.71%), and Samsung Biologics (+3.1%) were among the leaders. Sentiment improved as US Treasury yields declined, bolstering growth-sensitive sectors.
• Taiwan's TAIEX is 1.20% higher with key AI-linked stocks advanced, with TSMC (+2.2%), Alchip (+2.6%), and ASE Technology (+2.3%) gaining on optimism over U.S. AI infrastructure investments.
• Australia's ASX 200 is 0.4%, with financials and consumer discretionary sectors leading gains. The index is on track for a third consecutive daily advance.

Overall, looser regulations and significant AI-related investments spurred optimism in AI and tech sectors across the region, while easing inflation and energy prices provided additional support for market sentiment.