Investing.com — Asian stocks mostly rose on Friday, with the region heading for its strongest weekly performance since mid-June as benign U.S. inflation data reduced expectations of an imminent Federal Reserve rate hike and extended the broader technology rebound.
The move followed another strong session on Wall Street. The S&P 500 closed at a record high on Thursday, while the rose to its highest level since late June. In Asian trade, slipped about 0.1%, while S&P 500 Futures were little changed.
The main macro catalyst remained the shift in Fed expectations. U.S. producer prices were unchanged in July, below forecasts for a 0.2% increase, while annual PPI inflation slowed to 4.7% from 5.5% in June. Fed funds futures now imply about a 35% chance of a hike, down from 55% a week ago.
extends bull-market rebound as chipmakers lead
The equity gauge gained about 0.5%, putting it on track for a 2.7% weekly advance and a fourth straight week of gains.
South Korea’s KOSPI rose 1.6%, while Japan’s climbed 0.7% and gained 0.8%.
The KOSPI has rebounded about 23% from its late-July trough and is now firmly out of the bear-market phase triggered by last month’s 22% plunge, its worst monthly decline since the global financial crisis.
The index is still around 24% below its late-June peak, despite being up more than 60% this year.
rose 3.2%, taking its weekly gain above 15%, while added 0.9%, also up more than 15% this week. gained 4.1%.
Japan’s chip complex also strengthened. rose 3.4%, gained 2% and was flat. jumped 5.2%, while slipped 0.5%.
China tech lags regional rally; JD plunges as oil holds near $87
Meanwhile, the fell 0.12%, while the slipped 0.2%. Hong Kong’s dropped 0.9%.
There were pockets of strength in Chinese chips. Semiconductor Manufacturing International Corp () rose 2.2% after its second-quarter earnings showed strong AI-related demand and helped lift parts of the broader semiconductor sector. gained 1.8% and added 0.5%.
The broader China tech picture was weaker, however. fell 1.55%, dropped 2.30%, while sank 5.53%. plunged 10% after its earnings showed revenue fell year-on-year for the first time in more than a decade, underscoring lingering pressure on Chinese consumer demand.
Australia’s S&P/ASX 200 fell 0.9%, while India’s opened 0.3% lower. Singapore’s was broadly unchanged.
Oil held near $87 a barrel on Friday after falling in the previous session, but remained on track for a roughly 4% weekly gain, ending a two-week losing streak.
The rise followed renewed U.S. pressure on Iran and faltering efforts to end the conflict, although equities have so far largely looked through the geopolitical risk.