Chip stocks power Asia market higher, Taiwan leads regional gains

January 16, 2026 (MLN):  Asian markets moved higher on Friday, led by strong gains in chip-related stocks.

Taiwan outperformed its regional peers, with the Taiwan Weighted Index jumping 1.1% to become Asia’s best-performing market of the day.

The advance was driven by Taiwan Semiconductor Manufacturing Co., which rose 1.48% after reporting another record quarter.

The world’s largest contract chipmaker also announced plans to significantly increase capital expenditure in 2026, forecasting spending of between $52bn and $56 bn, CNBC reported.

Sentiments toward semiconductor stocks was further supported by a newly reached trade agreement between the United States and Taiwan.

 As part of the deal, Taiwanese semiconductor firms committed to investing at least $250bn in U.S. manufacturing capacity in return for reduced “reciprocal” tariffs.

Elsewhere in the region, Japan’s Nikkei 225 declined 0.46%, extending losses from the previous session, while the broader Topix index slipped 0.57%.

SoftBank Group, which has exposure to several chip-related companies including Arm, bucked the trend and gained 1.04%.

South Korean markets showed mixed performance. The Kospi index climbed 0.92%, helped by gains in major chipmakers Samsung Electronics and SK Hynix, which rose 3.44% and 0.8%, respectively.

In contrast, the tech-heavy Kosdaq fell 0.59%.

Australia’s S&P/ASX 200 edged up 0.31%. In Greater China, Hong Kong’s Hang Seng Index advanced 0.68%, while China’s CSI 300 added 0.57%.

State-backed chipmaker Semiconductor Manufacturing International Corp. rose 1.62%.

U.S. markets closed higher overnight, providing a supportive backdrop for Asian trading.

The Dow Jones Industrial Average gained 0.60%, while the S&P 500 and Nasdaq Composite rose 0.26% and 0.25%, respectively.

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