Asian markets experienced a Friday turnaround, recovering from earlier tech-led losses as major indexes across Japan, South Korea, Australia, and Hong Kong closed higher. This resilience emerged despite a significant sell-off in US semiconductor stocks overnight, which impacted the Nasdaq. Gold prices climbed and the U.S. dollar weakened, fueled by a softer-than-expected June jobs report that tempered Federal Reserve rate hike expectations.
Asian-Pacific markets displayed a mixed performance earlier on Friday before ultimately closing higher, shaking off initial dips driven by a rotation out of high-flying technology stocks. Major indices across the region saw gains by afternoon trade, demonstrating a bounce-back from initial jitters.
In Japan, the benchmark Nikkei 225 surged 1.36%, extending its early momentum, while the broader Topix index also climbed 1.17%. South Korea's Kospi posted an impressive advance of 4.65%, although its tech-heavy counterpart, the Kosdaq Index, saw a decline of 1.68%. Australia's S&P/ASX 200 added 1.39% to its value. Hong Kong's Hang Seng Index gained 1.57%, and mainland China's CSI 300 was up 1.15%. Taiwan's Taiex benchmark closed 0.2% higher. Meanwhile, U.S. markets remained closed for the Independence Day holiday.
Overnight in the U.S., trading concluded with a mixed bag. The Dow Jones Industrial Average soared to a new record high, adding 594.83 points or 1.14% to close at an unprecedented 52,900.07. This bullish sentiment was largely fueled by a softer-than-anticipated June jobs report, which reignited hopes for potential Federal Reserve rate cuts. In contrast, the technology-heavy Nasdaq dipped 0.8% to 25,832.67, and the S&P 500 saw only a fractional rise of less than 1 point to finish at 7,483.24. The drag on these two benchmarks stemmed from a second consecutive day of weakness in semiconductor stocks. The VanEck Semiconductor (SMH) ETF fell 4.5%, with notable drops including a 13.6% decline in Teradyne, an 11.5% slide for KLA, and shares of Nvidia pulling back 1.4%. Micron shares also lost 5.5%. — Reporting by Justina Lee
The U.S. dollar continued its downward trajectory on Friday, positioning it for its most significant weekly decline in nearly three months. As of 2:20 a.m. ET, the U.S. dollar index, which benchmarks the greenback against a basket of major currencies, was 0.12% lower. This weakening dollar followed the release of U.S. nonfarm payrolls data on Thursday, which revealed the American economy added only 57,000 jobs in June. This figure fell significantly short of the downwardly revised 129,000 jobs added in May and missed the Dow Jones consensus forecast of 115,000. Market sentiment quickly adjusted, with the probability of the Fed raising interest rates by at least a quarter-point in September dropping to 53.5% according to CME's FedWatch tool, down from approximately 65% before the jobs report. — Reporting by Chloe Taylor
Korean technology stocks staged a strong comeback on Friday, with SK Hynix recovering early losses to surge around 10%, while Samsung Electronics extended its morning gains to an impressive more than 8%. The substantial gains from these two market heavyweights propelled South Korea's benchmark Kospi index up by over 6%, triggering a temporary trading 'sidecar' halt during the session. The regional tech rally wasn't limited to Korea; Hong Kong saw significant jumps from notable players like Knowledge Atlas, the firm behind Zhipu, which soared nearly 10%, and Manycore Tech, which gained 8%. In Japan, computer memory manufacturer Kioxia, which initially tumbled nearly 12% at the open, impressively recovered to rise more than 7% by afternoon trade. — Reporting by Jenny Lee
Kuaishou Technology shares initially jumped nearly 7% on Friday before paring some gains. The surge followed the company's announcement of a substantial capital injection of nearly $2.8 billion into its artificial intelligence subsidiary, Kling AI, with major backing from tech giant Tencent. The Beijing-based short video platform disclosed these funding details in a regulatory filing after the market close on Thursday. Bloomberg reported that Kuaishou was targeting a $15 billion valuation from this funding round. While opening as much as 6.89% higher, Kuaishou shares later settled to trade around 0.75% up. Read the full story here. — Reporting by Jenny Lee
Oil prices showed a modest uptick on Friday as investors cautiously assessed ongoing diplomatic efforts between Washington and Tehran, all while remaining vigilant to persistent geopolitical risks. U.S. West Texas Intermediate futures gained 0.38% to reach $68.95 a barrel, and Brent Crude futures climbed 0.38% to $72.07 a barrel. Trading activity was expected to be subdued given that U.S. financial markets were closed for the Independence Day holiday. U.S. President Donald Trump stated to CNBC on Thursday that he believed Iran had "agreed to just about everything we need," framing the situation as the "denuclearization of Iran" rather than a broader conflict. He highlighted oil prices near $68 as an indicator of market stability and cautioned against a prolonged closure of the Strait of Hormuz, warning that sharply higher crude prices could trigger an economic depression. — Reporting by Lee Ying Shan
Gold prices saw a notable rise on Friday, driven by weaker-than-expected U.S. jobs data that dampened projections for further Federal Reserve interest rate hikes. Spot gold added 1.67%, reaching $4,191.69 per ounce, setting it on course for its first weekly advance in five weeks, according to data from LSEG. State Street Investment Management suggested that gold's rally could have more room to grow, even after bullion experienced an 11.7% decline in June due to higher opportunity costs and a strengthening dollar. The firm reaffirmed its target of $5,000 an ounce by early 2027, with a 70% baseline forecast predicting prices could ascend to between $4,750 and $5,500 over the next six to nine months. While acknowledging increased tactical headwinds that could see gold trading between $4,000 and $4,750, State Street emphasized that structural post-Covid support for bullion remains solid, with firm price support anticipated around $3,750 to $4,000. — Reporting by Lee Ying Shan
Earlier in the week, Asia's technology stocks extended their sell-off on Thursday, mirroring another weak session for U.S. chipmakers as investors continued to shift away from the artificial intelligence trade. In Japan, chip equipment manufacturer Lasertec dropped 5.8%, Renesas Electronics declined 6.7%, and Tokyo Electron fell nearly 4%. SoftBank Group, a significant tech investor, also lost 5.2%. South Korean technology names were likewise under pressure, with chipmaking giant SK Hynix sliding 1.9%, and investment holding company SK Square shedding 5.4%. Battery maker Samsung SDI tumbled over 8%, and consumer electronics firm LG Electronics fell more than 6%. However, Samsung Electronics defied the broader sell-off, rising 1.4% following a report that AI startup Anthropic was in discussions with the company to manufacture custom AI chips. — Reporting by Lee Ying Shan
At the open on Friday, Asia-Pacific markets traded mixed as investor sentiment was initially dampened by a rotation out of technology stocks, tracking declines seen in the U.S. Japan's benchmark Nikkei 225 started down 0.86%, though the Topix was up 0.34%. South Korea's Kospi opened 0.97% higher, while the Kosdaq Index declined 1.12%. Australia's S&P/ASX 200 added 0.42%. Futures for Hong Kong's Hang Seng index were at 23,061, slightly above its previous close of 23,055.03. — Reporting by Lee Ying Shan
