Asian stock markets climbed on Friday, led by a strong rebound in semiconductor shares as investors shifted emphasis back to the long-term artificial intelligence investment story following fresh signs that chipmakers are gearing up for another wave of capital expenditure. The move higher came even as renewed tensions in the Middle East - sparked by new U.S. strikes on Iran and subsequent missile and drone responses against U.S.-aligned countries - kept concerns about the Strait of Hormuz and global oil flows in the spotlight.
Despite the geopolitical backdrop, market participants homed in on indications that the AI-driven spending cycle remains intact after another week of large capital spending announcements from major chip producers. In Asian trading, Nasdaq 100 Futures rose 0.3% and S&P 500 Futures gained 0.1% as sentiment improved.
Regional market moves and the tech rebound
The rebound in technology stocks represented a sharp reversal from earlier in the week, when a technology-led selloff pressured regional indexes. South Korea set the pace for the rally, with the KOSPI jumping 4.2% - recouping part of this week’s losses after the market officially entered bear-market territory on Thursday. Even with Friday’s advance, the KOSPI remained on track for a weekly decline of more than 6%.
Major Korean chipmakers led the sector recovery. Samsung Electronics Co Ltd (KS:005930) climbed 4.9% after having led the week’s declines, while SK Hynix Inc (KS:000660) rose 1.5% following the pricing of its $26.5 billion U.S. American depositary share offering, a deal that reportedly attracted demand greater than seven times the shares on offer. SK Hynix’s ADSs are set to trade under the ticker SKHY, offering U.S. investors a more direct stake in one of Nvidia’s main high-bandwidth memory suppliers. The stock, despite recent corrections, is noted in the market as being up roughly 680% over the past 12 months.
The broad improvement in sentiment was reinforced by corporate spending plans from other chip-sector firms. Micron Technology Inc (NASDAQ:MU) announced it would raise planned U.S. investment to roughly $250 billion through 2035 to expand memory-chip production, a move that underpinned investor confidence in the sector’s spending trajectory.
Japan and other markets
Japan’s markets followed South Korea’s lead: the Nikkei 225 climbed about 2%, narrowing its weekly loss to roughly 0.9%, while the TOPIX added 0.7%. Market optimism received a lift from reports that Japan’s Government Pension Investment Fund is weighing an increase in its allocation to domestic equities, which acted as a fresh tailwind for broader market buying, particularly in technology names.
Individual movers in Japan included Murata Mfg Co (TYO:6981), which rose around 3.9%, and Kioxia Holdings Corp (TYO:285A), which gained roughly 5.7% after private equity firm Bain Capital completed its exit from the flash-memory maker on Thursday. Taiwan’s markets were closed for a public holiday.
Geopolitical backdrop and monetary policy divergence
Markets kept a close watch on renewed exchanges between the United States and Iran after fresh military strikes and retaliatory attacks, developments that renewed pressure on an already fragile ceasefire reached last month. While oil prices found support amid the tensions, investors largely focused on corporate investment and earnings prospects rather than letting the geopolitical risk dominate trading.
Regional central bank decisions this week underscored diverging policy paths. Bank Negara Malaysia held its overnight policy rate at 2.75%, while the Reserve Bank of New Zealand increased its official cash rate by 25 basis points and signalled that further tightening could be required. The differing stances highlighted the variety of macroeconomic conditions across Asia and the Pacific.
Upcoming data and catalysts
Attention now shifts to a busy roster of regional economic releases and events that could shape near-term sentiment. Key upcoming data include China’s June trade figures, second-quarter GDP, retail sales and industrial production, Singapore’s advance GDP estimate, India’s June inflation report and the Bank of Korea’s policy meeting. These releases are expected to provide direction for markets across the region.
Other markets and sector moves
Hong Kong’s Hang Seng index climbed 1.8% to its highest level since June 17, while mainland China benchmarks moved higher: the Shanghai Shenzhen CSI 300 added 0.2% and the Shanghai Composite rose 0.4% as investors positioned for potential policy support from Beijing ahead of next week’s trade data. Singapore’s FTSE Straits Times rose 0.5%.
Australia’s S&P/ASX 200 gained 0.7%, bolstered by strength in uranium miners after Australia and India agreed to deepen cooperation on uranium exports. Paladin Energy rose about 5%, Boss Energy jumped more than 8%, and Deep Yellow rallied around 9%, trades that reflected investor optimism that the agreement could support long-term demand for Australian uranium amid a broader push to expand nuclear power capacity globally.
Outlook
Friday’s trading illustrated that investors can, at times, prioritize structural investment themes such as AI-driven semiconductor spending even when geopolitical risks persist. With a packed calendar of economic data and several central bank decisions coming up, the market’s near-term direction will likely hinge on how incoming information influences expectations for corporate investment, policy settings and commodity prices.