Hong Kong/Singapore — Asia-Pacific markets began the new year on a strong note, with South Korea's Kospi and Singapore's Straits Times Index both closing at record highs on Friday. The positive momentum was fueled by tech sector strength, a blockbuster AI chip IPO in Hong Kong, and robust economic data from Singapore.

South Korea's benchmark Kospi surged 2.27% to a new closing high of 4,309.63, driven by a nearly 7% jump in Samsung Electronics. The rally followed reports that customers praised the company's high-bandwidth memory (HBM) chips, critical for artificial intelligence applications. The small-cap Kosdaq also gained over 2%.

AI Chip Frenzy and Economic Strength Fuel Gains

In Hong Kong, the Hang Seng index climbed 2.62%, led by a spectacular debut from AI chip designer Shanghai Biren. Its shares skyrocketed over 70% following a $717 million IPO that saw its public offering oversubscribed by more than 2,300 times—a clear signal of intense investor appetite for semiconductor and AI exposure.

Singapore's markets were buoyed by stellar economic data. The city-state's economy expanded 5.7% year-on-year in the fourth quarter, surpassing previous growth and contributing to a full-year 2025 expansion of 4.8%, which Prime Minister Lawrence Wong called "stronger-than-expected." The Straits Times Index rose 0.32% to its own record close.

A Broader Regional Mix as Major Markets Remain Closed

The trading session was somewhat fragmented, with major markets like Japan and mainland China still closed for the New Year holiday. Australia's ASX 200 edged up 0.15%, while India's Sensex and Nifty 50 indices posted modest gains of around 0.6%.

The day's action underscores the continuing high-stakes race in the AI and semiconductor competitive ecosystem, where companies like Samsung and Biren are key players. Singapore's economic resilience also highlights how specific regional economies are executing a successful strategic pivot in global manufacturing and trade flows.

U.S. stock futures pointed slightly higher in early Asian hours, suggesting a potential calm open on Wall Street following modest losses in the final session of 2025. The positive start in Asia sets a hopeful, if selective, tone for global markets at the beginning of 2026.