SK Hynix Surges by 7%, Japanese and Korean Stock Markets Both Hit New Record Highs

Asian stock markets gained ground overall on Monday, with the Nikkei 225 and South Korea's KOSPI both setting new historical highs, continuing the strong performance of last week's US stock market.

The Nikkei 225 rose by 1.8%, driven by two factors: first, the market's concerns about US-Iran diplomatic frictions have been largely digested, and second, investors are preparing in advance for the upcoming BoJ policy decision.

Japanese 10-year government bond yields rose to about 2.45%, approaching levels not seen in nearly thirty years, as the market prepares in advance for the upcoming BoJ policy decision. The yen remained near 159.3 per US dollar on Monday, with last week's declines temporarily halted.

South Korea's KOSPI also rose by more than 1%, supported by leading chip stocks and strengthening domestic economic data, setting a new historical high. SK HYNIX is predicted by analysts to reach a per capita dividend as high as $878,000 by 2027 due to the AI boom driving strong demand for HBM. Hyundai Motor, Samsung Electronics, and HD Hyundai Heavy Industries all rose collectively.

The markets in China and Hong Kong saw more moderate gains, with the Shanghai Composite Index and Hang Seng Index both rising by 0.15%. China's industrial enterprise profits grew by 15.5% year-on-year in the first quarter, accelerating further from the 15.2% growth in the first two months, while the offshore yuan remained near 6.82 per US dollar, close to its strongest level since February 2023.

Gold retook above $4,700 per ounce on Monday, after previously being under pressure, then rebounded as Iran reportedly submitted a new proposal to the US, seeking to reopen the Strait of Hormuz and promote an end to the war.

US stock futures, Dow futures fell by 0.09%, S&P 500 futures rose by 0.12%, and Nasdaq futures rose by 0.35%.