South Korean Stocks Lead Asia-Pacific Gains Amid AI Concerns and Tariff Uncertainty
Asian stock markets experienced a mixed start to the week, with gains in South Korea offsetting broader anxieties surrounding the potential impact of artificial intelligence on corporate profits and escalating tariff concerns. The MSCI Asia Pacific Index saw a slight dip, although South Korea’s KOSPI index continued its upward trajectory, serving as a bellwether for AI-related investments.
South Korea’s KOSPI Reaches New Heights
South Korea’s KOSPI jumped 2.88% to 5,665.61 as of 11:31 a.m. Local time on February 19, 2026, surpassing the 5,600-point mark for the first time. The KOSDAQ, a smaller market focused on growth companies, surged 4.27% to 1,153.34. A buy-side sidecar was issued as the KOSDAQ 150 futures soared over 5 percent, temporarily halting program trading orders for five minutes.
Institutional investors drove the KOSPI rally, while both institutional and foreign investors fueled gains in the KOSDAQ. Market leaders Samsung Electronics and SK Hynix saw increases of 4.64% and 1.99%, respectively. Hyundai Motor rose 0.60%, and LG Energy Solution increased 1.52%. Samsung Biologics gained 2.16%, and Hanwha Aerospace rose 2.99%. HD Hyundai Heavy Industries and Doosan Enerbility likewise saw significant gains, increasing by 6.08% and 2.48%, respectively.
Global Market Trends and AI-Driven Volatility
The positive performance in South Korea contrasts with a decline in U.S. Markets on Monday, where the S&P 500 Index fell 1% due to concerns about the potential disruption caused by AI across various industries. Software companies were particularly affected, with International Business Machines Corp. Experiencing its worst day since October 2000 after Anthropic’s Claude Code demonstrated the potential to modernize COBOL programming, traditionally run on IBM computers.
The “AI scare trade” has extended beyond software, impacting insurance brokers, private credit firms, cybersecurity companies, and even real estate services in the U.S. Despite these concerns, Asian shares have outperformed, with the MSCI Asia Pacific Index rising 12% this year compared to a 0.1% decline in the S&P 500.
Tariff Uncertainty Adds to Market Concerns
Adding to the market’s unease is growing uncertainty surrounding U.S. Tariffs. Following the Supreme Court’s decision regarding former President Trump’s “reciprocal” tariffs, the White House announced plans for a new, across-the-board 15% tariff on U.S. Imports. This has led the European Union to freeze ratification of its U.S. Trade deal.
The U.S. Is also preparing additional national security investigations that could lead to new tariffs on a half-dozen industries. While the initial shock of the tariff announcements has subsided, analysts predict that tariff-related issues will continue to be a distraction for markets throughout the year.
Commodity and Currency Movements
Treasuries and gold maintained their gains from the U.S. Session as investors sought safe-haven assets. Bitcoin continued to trade below $65,000, and the dollar remained relatively stable in early trading. Oil prices steadied after President Trump indicated a preference for a nuclear deal with Iran ahead of upcoming talks between the two nations.
As of February 16, 2026, Tokyo’s Nikkei 225 edged up 0.1% to 56,996.21, despite slower-than-expected economic growth in the October-December quarter. Hong Kong’s Hang Seng gained 0.5% in a half-day session, closing at 26,705.94. Australia’s S&P/ASX 200 rose 0.3% to 8,940.60, and India’s Sensex was up 0.2%.