Asian share markets recovered on Friday as investors returned to technology stocks after a volatile several sessions. Bargain hunting in semiconductor names combined with signs of easing geopolitical tension and hopes that a cooling U.S. labour market could keep the Federal Reserve on track for possible easing later in the year, underpinning a renewed appetite for risk.
Overnight in the United States, the Dow Jones Industrial Average closed at a record high ahead of Friday's U.S. Independence Day holiday. In Asian trading, Nasdaq 100 futures rose 0.7% and S&P 500 futures gained 0.3% - momentum that helped lift sentiment across the region.
Oil prices remained subdued after President Donald Trump said in a televised interview that the conflict with Iran had eased and that he believed Tehran was willing to resume negotiations. The remarks contributed to a softer oil complex and an extension of improved risk sentiment in global markets.
Chipmakers drive the rebound
South Korea led the regional advance after a technology-led selloff earlier in the week pushed the KOSPI near technical bear-market territory. The KOSPI climbed 2.7% on Friday, although the benchmark remained down about 6.5% for the week.
Technology heavyweights drew the bulk of bargain bids after two sessions of steep profit-taking. Samsung Electronics rose 6.5% and SK Hynix gained 4.2% during the rebound. Despite Friday's recovery, Samsung was still down 10.2% for the week, while SK Hynix had lost 15.4% over the same period.
The rally spread through Asia's semiconductor supply chain. Japan's TOPIX advanced 0.8% as investors rotated back into technology and export-oriented stocks. Memory chipmaker Kioxia Holdings jumped 7.3%, electronics components firm Rohm rose 7.0%, and Sumitomo Chemical added 6.6%, each among the leaders on their benchmark following earlier profit-taking.
Chinese equities also regained lost ground after two straight sessions of declines. The Shanghai-Shenzhen CSI 300 rose 1.1% and the Shanghai Composite added 0.6%. The bounce was aided by a private-sector services PMI from Caixin/RatingDog that remained firmly in expansion territory, supporting the view that domestic demand is improving alongside earlier manufacturing data.
Broad-based regional strength and data support
Other regional markets posted solid gains. Japan's Nikkei 225 rose 0.7% and was little changed for the week to date. Singapore's STI was set to close the week at record levels. Australia's S&P/ASX 200 climbed 1.2% after stronger-than-expected services activity suggested improving business conditions. Indonesia's Jakarta Stock Exchange Composite Index advanced 2.2%, trimming its weekly decline to about 0.4%.
Hong Kong's Hang Seng gained 1.4%, extending its weekly advance to roughly 3.2%, while South Korea's foreign exchange reserves increased in June, providing a modest signal of financial stability after this week's volatility.
On the data side, Australia's composite PMI returned to expansion and Japan's final services PMI was revised higher, both pointing to continued strength in domestic demand. These releases broadly reinforced the improved risk mood among regional investors.
Near-term outlook and policy focus
Looking ahead, market participants will be watching regional economic releases and central bank cues. Thailand's inflation data is due on Monday, and Bank Negara Malaysia is widely expected to leave interest rates unchanged next week. According to ANZ, inflation is expected to remain broadly stable in China and Taiwan while easing only marginally in the Philippines, providing fresh insight into the region's policy outlook after a week dominated by technology-driven market moves.
For now, the combination of technology bargain-hunting, stabilising economic indicators and softer oil on comments about Iran appears to have lifted sentiment across Asian markets. However, investors will continue to monitor the pace of AI-related investment returns, the evolution of geopolitical risks and incoming inflation and PMI data for further direction.
Summary takeaways
- Asia's markets rebounded as tech and semiconductor stocks attracted buying after earlier profit-taking.
- Softer oil prices following diplomatic comments helped extend the improvement in global risk appetite.
- Regional PMIs and economic data broadly supported the recovery, while upcoming inflation readings and central bank decisions remain focal points.