Asian Markets Mixed as Tech Rally Lifts Sentiment and Oil Prices Ease

BY COMFORT OGBONNA

Asian stock markets finished mixed on Friday as investors took cues from a rebound on Wall Street, where major indexes snapped a two-day losing streak and edged back toward record territory. Gains were driven largely by renewed strength in major technology stocks, particularly those tied to artificial intelligence, helping to stabilize sentiment across the region.

U.S. stock futures pointed higher in early trading, while oil prices remained subdued, offering additional relief to markets after a volatile week. Technology shares regained momentum after Taiwan Semiconductor Manufacturing Co., one of the world’s most important chipmakers and a key supplier to the global tech industry, reported strong quarterly profits and outlined ambitious investment plans. TSMC shares rose about 3% in early trading on Friday, pushing Taiwan’s Taiex index up 1.9%.

The surge in AI-related stocks has sent Nvidia and other market heavyweights to lofty valuations, raising concerns among some investors that prices may have run ahead of fundamentals. Still, confidence appeared to improve after TSMC Chief Financial Officer Wendell Huang said the company continues to see “strong demand,” a comment widely viewed as a positive signal for the broader AI supply chain. Nvidia climbed 2.1% on Thursday, while TSMC’s U.S.-listed shares jumped 4.4%.

Adding to optimism was the signing of a major U.S.-Taiwan trade agreement that includes roughly $250 billion in new investments by Taiwanese semiconductor and technology firms in the United States. Under the deal, the Trump administration is set to reduce tariffs on Taiwanese goods. The agreement is aimed at strengthening strategic economic ties while supporting upgrades to U.S. industrial and manufacturing infrastructure, particularly in advanced technology sectors.

Across Asia, market performance was uneven. In Japan, the Nikkei 225 slipped 0.3% to 53,936.17, while Hong Kong’s Hang Seng Index fell 0.6% to 26,770.56. Mainland Chinese shares were also lower, with the Shanghai Composite Index down 0.3% at 4,101.91. Investors remained cautious ahead of China’s release of its 2025 economic growth figures on Monday. Expectations are for annual growth of around 4.5%, representing a slowdown from earlier in the year.

Elsewhere in the region, South Korean stocks outperformed. The Kospi rose 0.9% to a record high of 4,840.74, extending a rally that has lasted several weeks. Renewed confidence in AI-related companies has supported the market, with Samsung Electronics climbing 3.5%. In Australia, the S&P/ASX 200 added 0.5% to 8,903.90, while India’s Sensex advanced 0.4%.

Wall Street provided a steadier backdrop overnight as investors returned to artificial-intelligence stocks after recent pullbacks. The S&P 500 rose 0.3%, the Dow Jones Industrial Average gained 0.6%, and the Nasdaq composite edged up 0.2% to 23,530.02. Lower energy prices also helped ease concerns about inflation and geopolitical risks.

Oil prices remained relatively calm despite recent volatility. Early Friday, benchmark U.S. crude traded at $59.21 per barrel, up 14 cents from the previous day but still sharply lower after a 4.6% drop on Thursday. Brent crude, the international benchmark, rose 10 cents to $63.86 per barrel after falling 4.1% a day earlier. Markets reacted to comments from former President Donald Trump suggesting that plans for executions in Iran had been halted amid widespread protests, a development investors interpreted as a possible easing of tensions in a key oil-producing region.

In currency markets, the U.S. dollar weakened slightly against the Japanese yen, slipping to 158.19 yen from 158.63. The euro edged higher to $1.1614 from $1.1609.

Meanwhile, earnings season in the United States continued to gather momentum, with more major financial and corporate results expected in the coming weeks. Analysts say technology earnings will be under particularly close scrutiny as investors assess whether strong valuations are supported by profit growth. As one market analyst noted, upcoming results could play a decisive role in determining whether the recent rally in tech shares has further room to run.