Asian stock markets pushed higher on Friday, extending a run of gains that left regional benchmarks headed for weekly advances. The uptick was led by chipmakers after Nvidia released a strong outlook that underscored continued spending on AI infrastructure, but momentum was constrained by unresolved issues in negotiations between Washington and Tehran.
U.S. markets had closed marginally higher overnight, with the Dow Jones Industrial Average recording a record close. In early Asian hours, U.S. stock futures were trading slightly higher, with moves noted by 03:56 GMT.
Equity performance and sector drivers
Japan’s Nikkei 225 climbed more than 2.5% on the day, trading near record highs and on track to rise almost 3% for the week. The broader TOPIX index in Japan rose by nearly 1%.
Investor interest returned to semiconductor and related technology names after Nvidia’s upbeat guidance signaled resilient investment in AI computing infrastructure. Japanese technology investor SoftBank Group (TYO:9984) extended sharp gains amid market optimism over a potential OpenAI initial public offering and expectations that Arm Holdings will benefit from surging AI demand.
China’s Shanghai Composite advanced 0.5%, while Hong Kong’s Hang Seng gained 1.3%. South Korea’s KOSPI inched up 0.2%, positioning it for a roughly 4.5% jump for the week.
In company-specific moves, Samsung Electronics (KS:005930) shares slipped about 2% on Friday after union members began voting on a tentative pay deal struck earlier in the week. That tentative agreement had narrowly averted a potentially damaging 18-day strike that would have involved tens of thousands of employees. Samsung stock had surged 9% on Thursday following the announcement of the tentative agreement and the suspension of strike action.
Elsewhere in the region, India’s Nifty 50 and Singapore’s Straits Times Index each rose 0.4%, and Australia’s S&P/ASX 200 gained 0.5%.
Geopolitical negotiations and commodity impacts
Despite the positive momentum in equities, gains were constrained by lingering doubts about whether talks between the United States and Iran will resolve key sticking points. Officials from both sides cited signs of progress, but significant disagreements persisted over Iran’s uranium stockpile and suggested controls in the Strait of Hormuz, a crucial corridor for global oil shipments.
U.S. Secretary of State Marco Rubio said there were "some good signs" in the discussions but rejected any proposal that would impose tolls on ships using the strait. Oil prices rebounded on Friday after a sharp drop in the prior session as renewed doubts about the durability of any deal resurfaced. The rise in crude prompted renewed concerns that higher energy costs could exacerbate inflation and influence global interest rate expectations.
Inflation data and central bank expectations in Japan
Japanese data released on Friday showed core consumer inflation slowed to a four-year low of 1.4% in April, down from 1.8% in March. The reading missed market forecasts, with the report attributing the slowdown largely to government fuel subsidies and lower education costs.
Despite the softer inflation print, analysts cited in market commentary expect inflationary pressures to re-emerge in coming months as higher energy prices linked to Middle East tensions feed through the economy. The data did not materially change expectations that the Bank of Japan could still raise interest rates later this year; some investors were even pricing in the possibility of a rate move as soon as June, amid concerns that surging oil costs and a weak yen could push prices higher again.
Outlook
Regional markets entered the weekend in positive territory on a chip-driven rally but with a clear recognition that geopolitical developments and commodity price swings could quickly alter sentiment. Investors remain attentive to further updates from the U.S.-Iran negotiations, oil market moves, and any fresh data that could influence central bank timing on interest rates.