BY COMFORT OGBONNA
Asian stock markets climbed sharply on Friday, led by major technology and artificial intelligence companies, as investors largely looked past renewed military tensions between the United States and Iran and focused instead on the strong performance of semiconductor firms and the highly anticipated market debut of South Korean chip giant SK Hynix.
The latest exchange of attacks between Washington and Tehran has further weakened a fragile three-week-old ceasefire, raising concerns about a possible escalation in the Middle East. However, global markets have so far shown resilience, with investors appearing more focused on the continued growth potential of artificial intelligence and technology companies.
Oil prices remained a key concern for investors as renewed geopolitical risks increased fears of supply disruptions. Brent crude futures were on track for their strongest weekly performance since early May, gaining about 5% over the week. Despite the increase, Brent prices at around $76.73 a barrel remained below the highs reached when the conflict began in late February.
“Investors are watching developments in the Middle East, and the situation remains concerning, but markets appear remarkably resilient at the moment, with technology stocks once again leading gains,” said Nick Twidale, chief market strategist at ATFX Global in Sydney.
Japan’s Nikkei index jumped 1.8%, while South Korea’s KOSPI index, which has become the center of the global artificial intelligence investment boom, surged more than 5%. Semiconductor leaders SK Hynix and Samsung Electronics gained strongly, rising nearly 3% and 6%, respectively.
Taiwan’s stock market was closed because of a typhoon, but the broader MSCI Asia-Pacific index excluding Japan still advanced 1.8%, reflecting widespread optimism across regional markets. European stock futures, however, slipped slightly by 0.24%, suggesting some investors remained cautious about global risks.
Market participants continued to monitor the possibility of further disruptions in the Middle East, particularly any threat to the Strait of Hormuz, one of the world’s most important energy shipping routes.
“Asian markets are starting strongly again, but there remains a risk that investors are not fully pricing in the possibility of another major event, including a renewed closure of the Strait of Hormuz,” Twidale said.
Despite geopolitical concerns, artificial intelligence remained the dominant theme driving investor sentiment. The rapid growth of AI-related businesses has pushed global stock markets to record levels, though some analysts have warned that valuations have become increasingly stretched and could face challenges if growth expectations are not met.
SK Hynix has been one of the biggest beneficiaries of the AI boom due to strong demand for advanced memory chips used in artificial intelligence systems. The company’s South Korean shares have risen more than 200% this year, helping push the broader KOSPI index to record highs and making it one of the world’s strongest-performing major stock markets since the beginning of 2025.
Analysts said continued strength in SK Hynix shares could also benefit Samsung Electronics, particularly as investors await further details about Samsung’s plans for shareholder returns.
“If SK Hynix receives a higher market valuation, that could also support a similar revaluation for Samsung, especially as the company outlines its plans for returning value to shareholders,” said Konrad, an investor who holds positions in both South Korean technology companies.
Meanwhile, Japan’s currency strengthened after Finance Minister Satsuki Katayama announced that the government would explore ways to encourage pension funds, including the Government Pension Investment Fund, to increase investments in domestic financial assets.
The Japanese yen gained 0.4% to trade at 161.69 per U.S. dollar following the comments. The currency had recently remained near its weakest level in about four decades as traders watched closely for possible government intervention to support it.
Masahiko Loo, senior fixed income strategist at State Street Investment Management, described the policy announcement as a positive signal because markets have increasingly questioned how much capacity Japanese authorities have available for direct currency intervention.
“With more than $1 trillion in foreign exchange reserves, intervention remains possible,” Loo said. “However, encouraging domestic institutional investors to keep more capital invested at home provides a more sustainable and long-term approach to supporting the yen.”
The U.S. dollar remained mostly steady as investors waited for new economic signals that could influence expectations for future Federal Reserve interest rate decisions. Traders are currently pricing in additional rate increases this year, though those expectations could shift if energy prices rise further and increase inflation pressures linked to the Middle East conflict.
For now, investors remain focused on the balance between two major forces shaping markets: the continued strength of artificial intelligence-driven technology growth and the potential economic impact of renewed geopolitical uncertainty.
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