Asian markets staged one of their strongest rebounds in history as the market turned positive around artificial intelligence (AI) returned following blockbuster earnings from Microsoft and Amazon. Nearly $1 trillion was added to Asian stock in a single session, with semiconductor stocks leading the rally after investors regained confidence that AI spending remains strong despite recent valuation concerns. The sharp recovery has also improved sentiment across risk assets, including cryptocurrencies.
AI Earnings Spark Massive Market Recovery
The biggest trigger came from Wall Street.
Microsoft added roughly $450 billion in market value after reporting 27% growth in cloud revenue to $593 billion, while Amazon surged nearly 10% after AWS recorded its fastest growth in 18 quarters. Those results eased fears that AI infrastructure spending was slowing.
The optimism spread quickly to chipmakers worldwide.
- South Korea’s KOSPI jumped 17.9%, its biggest single-day gain on record.
- SK Hynix surged 30%, hitting its daily upper limit.
- Samsung Electronics climbed 27%.
- Taiwan’s TAIEX gained more than 8%, with TSMC rising 10%.
- Japan’s Advantest soared nearly 18% after chip stocks rallied.
- The Philadelphia Semiconductor Index gained over 8% overnight.
Meanwhile, the Bank of Japan kept interest rates unchanged, while Japan’s unemployment rate remained stable at 2.5%, adding further support to markets.
The Rally Doesn’t Erase July’s Pain
Despite Friday’s explosive recovery, July remained extremely difficult for Asian stock.
The KOSPI still ended the month down 22.19%, marking its worst monthly performance since the 1997 Asian Financial Crisis, and remains nearly 30% below its June peak after the AI-led selloff.
Market analyst Bull Theory compared the recent correction with previous major crashes, including:
- 1997 Asian Financial Crisis (-76%)
- 2008 Global Financial Crisis (-57%)
- 2018 Trade War & COVID period (-44%)
- 2026 AI correction (-41% in just 40 days)
According to the analyst, the latest decline has been the fastest of the four, largely because South Korea’s market remains heavily concentrated in semiconductors and exports.
What It Means for Crypto
A stronger appetite for technology stocks is often positive for digital assets, especially when investors move back into risk markets.
According to recent market data, Bitcoin (BTC) trades near $63,779 down by 0.68%, Ethereum (ETH) around $1,888, down by 1.2%, BNB near $592 up by 2.43%, Solana (SOL) around $73 down by 0.16%, XRP near $1.07 down by 0.12%, while Cardano (ADA) remains gained by 3.87% and trading at $0.17.
If confidence in AI and technology continues improving, crypto markets could also benefit as institutional investors gradually rotate back into higher-risk assets. However, investors will continue watching earnings, central bank decisions, and semiconductor demand to see whether this rebound develops into a broader market recovery or remains another short-term relief rally.