Asian stocks were a mixed bag on Friday as technology shares advanced tracking positive earnings from chipmaking bellwether TSMC, but losses in other sectors limited overall gains.
Regional markets took a mildly positive lead-in from Wall Street, where gains in tech and banks helped markets break a two-day losing streak. S&P 500 Futures rose 0.3% by 00:10 ET (05:10 GMT), with focus turning to a host of key U.S. corporate earnings due next week.
Heightened geopolitical tensions across the globe also remained in focus, with unrest in Iran and a U.S. incursion in Venezuela keeping market optimism muted.
Asia tech rises, TSMC hits record high on bumper Q4
Tech-heavy Asian bourses rose on Friday, with South Korea’s KOSPI up over 1% on gains in local chipmakers. Samsung Electronics Co Ltd (KS:005930) rallied 3.5%, while SK Hynix Inc (KS:000660) added 0.8%.
This came largely after TSMC (TW:2330), the world’s largest contract chipmaker, clocked stronger-than-expected fourth-quarter earnings on Thursday, and signaled that artificial intelligence-fueled demand remained strong.
TSMC jumped 2.1% to a record high in Taiwan trade, after its U.S. shares surged over 4%.
The company is widely regarded as a bellwether for chip and AI demand, with its positive earnings sparking a rally across tech stocks.
Tech shares in Japan and Hong Kong also advanced on Friday, although the Nikkei 225 and the Hang Seng were held back by losses in other sectors.
The Nikkei fell 0.5%, extending a decline from record highs hit earlier this week. The Hang Seng was flat.
Both indexes faced some profit-taking in major names after marking a strong start to the year. Concerns over a China-Japan diplomatic spat also remained in play.
China stocks dip as regulatory changes weigh; Q4 GDP awaited
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell about 0.2% on Friday, extending losses after tumbling from multi-year highs this week.
China on Friday tightened its restrictions on high-frequency trading, calling for the removal of servers dedicated to automated trades.
The move came just days after the country hiked its margin financing requirements for stock trading, in an attempt to curb overspeculation and lower market risk.
But investors reacted largely negatively to the developments, amid concerns of government overreach in China’s capital markets. Mainland bourses fell sharply this week.
Focus remained on Beijing’s efforts to release more stimulus and support the Chinese economy, after data for December showed some signs of improvement, especially in Chinese spending.
Markets are awaiting key gross domestic product data for the fourth quarter, due on Monday, for more definitive cues on the Chinese economy. GDP is expected to have accelerated amid continued stimulus measures from Beijing and as the year-end holidays encouraged spending.
Focus will be squarely on whether the economy matched Beijing’s 5% annual GDP target.
Broader Asian markets were a mixed bag on Friday. Australia’s ASX 200 rose 0.6%, with local bank stocks tracking gains in their U.S. peers after positive earnings from Goldman Sachs Group Inc (NYSE:GS) and Morgan Stanley (NYSE:MS).
Singapore’s Straits Times index rose 0.3% after data showed the country’s key non-oil exports shrank much more than expected month-on-month in December.
India’s Nifty 50 index rose 0.7% in morning trade, recovering some ground after tumbling on heightened concerns over deteriorating trade ties with the United States.
Source: Investing