Wednesday Morning Coffee - Markets Update - 25 Feb 2026 - Asia Stocks Climb on Renewed AI Optimism as Trump Speech Looms

Global Markets Roundup: 25 Feb 2026

Asian markets pushed higher on Wednesday, led by South Korean chipmakers, as investors leaned back into what they view as the most reliable artificial-intelligence trade, while the yen stayed in the spotlight ahead of closely watched policy signals.

After months of volatility, traders were also focused on U.S. President Donald Trump’s State of the Union address on Tuesday evening in Washington, with markets bracing for remarks that could span trade, affordability and Iran.

Stocks Rise Across the Region

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) gained 1% in early trading.

Japan’s Nikkei NI225 hit another record, up 1.1% at 57,956.92 after touching an intraday peak of 58,047.89. The broader Topix TOPIX edged up 0.07% to 3,818.73.

South Korea’s KOSPI KOSPI jumped nearly 1.7%, trading above 6,000 for the first time, and is up 44% so far this year.

In Hong Kong, the Hang Seng Index HSI rose 0.36%, while China’s CSI300 3399300 added 0.3%.

Australia’s S&P/ASX200 XJO climbed as much as 1.1% to a record high, even as higher January consumer prices increased the risk of additional interest-rate hikes.

Chipmakers Lead as AI Trade Reasserts Itself

A global memory-chip shortage has helped drive a fresh wave of buying in the sector. Samsung Electronics 005930 and SK Hynix 000660 have seen their stock prices double since October, as cash has surged up the AI supply chain to the hugely popular chipmakers.

Investors are also eyeing results from Nvidia Corp NVDA, with the world’s leading chipmaker set to report fourth-quarter earnings after the U.S. market close on Wednesday.

Yen Strengthens as BOJ Expectations Get Cloudier

The yen USDJPY firmed 0.12% to 155.7 per dollar, after sliding 0.8% on Tuesday.

A news report said Japanese Prime Minister Sanae Takaichi had conveyed reservations about further interest-rate hikes to Bank of Japan Governor Kazuo Ueda, muddying the outlook for the next move.

A Reuters poll released last week showed most economists expect the BOJ to lift its key rate to 1% by the end of June, with some looking for an increase as soon as April on rising concerns around inflation pressures and a weak yen. Traders are currently pricing in 50% odds of a hike in April and a 65% chance of a hike by June.

“Given there was an expectation that she would shift her stance on monetary policy this latest news brings uncertainty back into the market, and leaves investors keenly interested to see who her nominations are for the two new Bank of Japan board members which is expected to be announced today,” NAB analysts said.

The dollar index DXY slipped 0.05% to 97.84, while the euro EURUSD rose 0.05% to $1.1777.

Yields Tick Higher; Fed Voices Emphasize Patience

Benchmark U.S. Treasury yields nudged up, with the 10-year US10Y yield rising 0.5 basis points to 4.039% and the 30-year (US30YT=RR) yield up 0.4 basis points to 4.6933%.

On Tuesday, Federal Reserve governor Lisa Cook and Chicago Fed president Austan Goolsbee said they viewed the U.S. labour market as potentially beginning to stabilise.

“It’s apparent that most members think it as appropriate to wait for further progress on inflation before adjusting policy lower,” ANZ analysts said.

“While there have been signs of labour market stabilisation in 2026, labour market conditions are soft and a source of disinflationary pressure.”

ANZ expects the Fed to begin easing in the second quarter, most likely in June, and forecasts 75 basis points of cuts this year.

AI Buzz Reignites After Anthropic Update

Risk appetite for AI-linked plays improved overnight after San Francisco-based startup Anthropic introduced 10 new ways for business customers to use its AI plugins, reviving hopes that the technology can lift profits across a broad range of sectors.

Still, AI-related stocks have swung sharply in recent weeks amid worries that heavy capital spending may not translate into earnings quickly.

“AI is not a bubble technology, but that doesn’t mean every AI bet will pay off. There are companies spending significantly on AI that likely won’t see a return,” said Laura Cooper, Nuveen’s head of macro credit and global investment strategist.

Oil Gains; Precious Metals Mixed

U.S. crude CL1! rose 0.75% to $66.12 a barrel, and Brent BRN1! advanced 0.75% to $71.30.

Spot gold GOLD was flat at $5,138.49 an ounce, while spot silver XAGUSD1! fell 0.43% to $86.96 an ounce.

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General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team