Asian markets rebounded on Friday as investors returned to technology and semiconductor stocks following Thursday’s sharp sell-off, with Japan and South Korea leading the recovery while Australian shares finished firmly higher as miners bounced back.
ASX closes higher as miners rebound
The S&P/ASX 200 finished around 0.9% higher near 8,800 points after reaching an intraday high of about 8,825, reversing Thursday’s modest decline as resources stocks led the advance.
Mining shares were among the strongest performers, with BHP and Fortescue gaining as investors returned to a sector that had been heavily sold during the previous session.
The Australian dollar remained under pressure at around US$0.692 following Thursday’s weaker employment report, which reduced expectations that the Reserve Bank of Australia will raise interest rates again at its November meeting.
Australian employment fell by 39,000 in September and unemployment rose to 4.7%, prompting bond yields to retreat and helping interest-rate-sensitive parts of the market.
Nikkei rebounds nearly 2%
Japan’s Nikkei 225 jumped around 1.8% to about 65,580 during afternoon trade, recovering part of Thursday’s 4.9% plunge.
The rebound followed a late recovery on Wall Street and falling US Treasury yields, which eased some of the pressure on technology companies after several sessions of heavy selling.
Japanese semiconductor and technology shares recovered as investors returned to stocks that had suffered the steepest falls during the previous session.
Despite Friday’s bounce, sentiment remained cautious following the abrupt unwinding of some artificial intelligence-related trades earlier in the week.
Kospi jumps after 7.6% plunge
South Korea’s Kospi climbed around 2.7% to roughly 5,710 points during afternoon trading as bargain hunters moved back into semiconductor stocks following Thursday’s 7.6% collapse.
Samsung Electronics and SK Hynix were among the companies attracting renewed buying after the sell-off left South Korean equities facing their weakest week in years.
Concerns about the scale and financing of global artificial intelligence investment remain in focus, however, leaving the technology-heavy Korean market well below levels seen earlier in the week.
Taiwan recovers as chip stocks stabilise
Taiwan’s Taiex gained around 0.7% to approximately 47,300 as semiconductor shares recovered following Thursday’s 3.4% decline.
The market remained well below recent highs after the week's sharp technology sell-off, although strong demand for advanced chips and the latest corporate results provided some support to the sector.
Hong Kong and China move higher
Hong Kong’s Hang Seng gained about 1.2% to around 24,350 during the morning session, recovering after Thursday’s decline as technology stocks participated in the broader Asian rebound.
Mainland China also strengthened, with the Shanghai Composite rising around 1% to approximately 3,743 before the midday break.
The gains followed several weaker sessions for Chinese equities and came as improved global risk appetite encouraged investors back into growth stocks.
India opens cautiously after Thursday surge
Indian shares were comparatively subdued after Thursday’s strong rally, with the Nifty 50 hovering around the 23,000 level and the Sensex trading close to flat during morning dealings.
Financial stocks weighed on the market, while technology shares remained supported after helping drive Thursday’s 1.7% gain in the Nifty and 2.1% advance in the Sensex.
Wall Street recovery supports Asia
The rebound across Asia followed a volatile Wall Street session in which US equities recovered from early technology-led losses as Treasury yields fell sharply.
The Dow Jones Industrial Average climbed 1.1%, or more than 550 points, while the S&P 500 gained 0.3% and the Nasdaq Composite finished marginally higher.
Technology remained the weaker part of the US market, with Nvidia, Tesla and Broadcom among the decliners, although losses moderated considerably by the close as investors responded to falling bond yields.
The US 10-year Treasury yield dropped to around 5.09%, helping ease some of the valuation pressure that had weighed heavily on technology stocks earlier in the week.
Gold holds above US$4,100
Spot gold traded around US$4,160 an ounce after attracting safe-haven demand during the week's market volatility, while Brent crude was around US$106 a barrel.
Iron ore remained below US$90 a tonne at around US$89.95, while Bitcoin was trading near US$82,000.
Friday’s session therefore marked a partial recovery from Thursday’s global technology rout, although the scale of the week's swings in Japan, South Korea and Taiwan suggests investors remain cautious about valuations and the durability of the artificial intelligence investment boom.
