Asian stocks start 2026 firmly; Taiwan, Singapore hit records

Emerging Asia stocks kicked off 2026 on a firm footing on Friday with markets in Taiwan, South Korea, and Singapore scaling new record peaks as investors gauge whether last year's AI-driven rally still has more room to run.

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The MSCI index of emerging Asian equities jumped as much as 2% to its highest point since late October, driven by stocks in South Korea and Taiwan, which make up two fifths of the gauge.

A broader index of global EM equities also jumped 1.6% to its highest since late February 2021. The AI-driven rally dominated 2025, propelling equity markets across Asia to historic highs despite lingering valuation concerns, with the Taiwanese and South Korean markets among the biggest beneficiaries.

South Korea's KOSPI index, last year's top performer with a 75% gain, rose 2.3% to a record 4,313.55, driven by Samsung Electronics and SK Hynix, which climbed 5% and 3.5%, respectively.

Taiwan's benchmark index touched a fresh peak of 29,363.43 points. The index crossed the 29,000-point mark for the first time on December 31, ending the year with a 27% gain, driven by technology and AI-related shares.

"South Korean and Taiwanese equities remain supported by strong AI-driven export demand and solid semiconductor earnings, but upside from here is likely to moderate," said Glenn Yin, the director of research at AC Capital Market.

"Valuations are stretched after last year's sharp rally, making a repeat in 2026 less likely. While structural demand for advanced chips remains intact, performance is likely to be more selective and less explosive."