Asian equity markets edged toward fresh highs on Friday as the MSCI Asia Pacific ex-Japan index surged 2.9%, its highest level since the series began. Investors piled into technology‑heavy South Korean and Taiwanese gauges, each climbing over 4%, while mainland China and Japan observed holiday closures. The rally followed a fifth straight week of gains for the S&P 500, which posted its best month since late 2020.

Chipmakers led the charge, with South Korea’s SK Hynix jumping 11% and Taiwan’s TSMC rising more than 6% after earnings beat expectations. Hong Kong‑listed Chinese tech stocks added over 3%, underscoring the sector’s momentum. Analysts at Pepperstone tied the surge to an AI‑driven growth narrative that is eclipsing lingering geopolitical risks from the Iran‑Hormuz tension.

The rally suggests investors are willing to overlook war‑related losses in favor of upside from artificial‑intelligence bets, buoyed by resilient earnings from U.S. megacaps. While oil prices and regional uncertainty could temper enthusiasm, the near‑record performance positions Asian markets as attractive venues for risk‑on capital seeking exposure to the AI wave.

U.S. Central Command meanwhile pledged naval and aerial assets to secure commercial traffic through the Strait of Hormuz, a move that could further calm shipping concerns and support commodity flows to the region. With the immediate geopolitical flashpoint being addressed, capital appears set to stay the course on AI‑centric equities across Asia.