Nikkei rises but gains checked ahead of ASML earnings, Kospi surges

Asian equities advanced after softer-than-expected June US inflation data reduced expectations for a July Fed rate hike, improving risk sentiment across the region. Japan’s Nikkei rose 0.58% after earlier gaining as much as 1.5%, while the broader Topix added 0.21%. Gains were stronger in South Korea, where the Kospi jumped more than 5% and briefly triggered a trading halt, led by semiconductor heavyweights SK Hynix (+11%) and Samsung Electronics (+6.84%). The rally was supported by a 2.54% rise in the US semiconductor index overnight, reflecting continued enthusiasm for AI-linked chip names. However, Tokyo traders turned more cautious ahead of ASML earnings, which are seen as a key read on chip demand and China-related export risks. In parallel, oil prices extended gains as geopolitical tensions in the Middle East intensified, with the US naval blockade of Iranian ports and fresh strikes adding a risk premium to energy markets.