Samsung and SK Hynix Lead Asian Gains as Chipmakers Anticipate Earnings

South Korean chipmakers led a rally in Asian markets on Tuesday, with shares of Samsung Electronics and SK Hynix surging on strong economic data and anticipation for upcoming earnings reports.

The Kospi index closed the day 3.1% higher at 5,638.34, after briefly climbing more than 4% in intraday trading. SK Hynix stock jumped 5.2%, while Samsung Electronics gained 4.2%.

This market performance follows data released Tuesday showing that the South Korean economy expanded at an annual rate of 3.4% during the July to September period. This growth figure exceeded analyst expectations, driven by high global demand for semiconductors.

Samsung has indicated that its operating profit for the final quarter will increase nearly eight-fold compared to the same period a year ago. The company is scheduled to release its third-quarter earnings on Thursday, one day after SK Hynix reports its results on Wednesday.

Asian markets showed mixed results elsewhere. Tokyo’s Nikkei 225 rose 1.7% to 63,268.37, aided by a 9.6% spike in shares of Advantest, a testing equipment maker. SoftBank Group, an investor in OpenAI, also climbed 5%.

In contrast, Hong Kong’s Hang Seng index slipped 0.7% to 23,041.32, giving up early gains. The Shanghai Composite dropped 1.3% to 3,648.30 as traders watched a closed-door meeting in Beijing involving top leaders of China’s ruling Communist Party. India’s Sensex fell 0.5%, while Australia’s S&P/ASX 200 advanced 0.5% to 8,852.10.

European stocks traded lower in early sessions. Germany’s DAX index slipped 0.1% to 25,373.71, and France’s CAC 40 dropped 0.3% to 7,824.83. Britain’s FTSE 100 declined 1% to 10,664.58. Futures for the S&P 500 and the Dow Jones Industrial Average showed little movement before the U.S. market open.

U.S. investors remain focused on how artificial intelligence spending is translating into profits. Nvidia stock rose 2.4% on Monday, helping the company recover from its longest losing streak since June. However, broader AI stocks remain volatile due to concerns over the high cost of borrowing money for data center construction.

Alphabet and Microsoft are set to report their quarterly results on Wednesday, with Amazon following on Thursday. These reports will provide key details on corporate spending and productivity in the AI sector. The Federal Reserve hiked interest rates last month for the first time in three years to combat inflation, a move that continues to influence borrowing costs for major technology firms.