Asian markets displayed a mixed performance on Friday, mirroring a cautious optimism that followed Wall Street’s recovery from a brief downturn. The U.S. stock market, buoyed by significant gains in major technology firms, particularly those at the forefront of the artificial intelligence revolution, managed to break a two-day losing streak and inch closer to its all-time highs. This resurgence in tech sentiment, coupled with easing oil prices, provided a stabilizing influence across global trading floors.
The renewed vigor in technology stocks was significantly influenced by the stellar performance of Taiwan Semiconductor Manufacturing Co. (TSMC), a critical linchpin in the global semiconductor supply chain. The company’s robust profit reports and ambitious investment plans sent positive ripples through the sector. Early Friday trading saw TSMC shares climb by a notable 3%, propelling Taiwan’s benchmark Taiex index upwards by 1.9%. This surge underscored the market’s continued faith in the long-term prospects of AI-driven technologies.
The extraordinary ascent of companies like Nvidia, a dominant force in AI chip manufacturing, has become a defining narrative of the current market. While the meteoric rise has sparked discussions about valuation concerns and potential overextension, Thursday’s trading session saw Nvidia gain an additional 2.1%. This upward movement was directly attributed to encouraging remarks from TSMC’s Chief Financial Officer, Wendell Huang. Huang highlighted "continued strong demand" for their products, a sentiment that serves as a powerful indicator for the entire AI ecosystem. The positive outlook from TSMC also translated to its U.S.-listed shares, which saw a substantial 4.4% increase on Thursday.
Adding another layer of positive sentiment for the tech sector was the recent signing of a significant U.S.-Taiwan trade agreement. This pact, valued at an impressive $250 billion in new investments, will see Taiwan’s semiconductor and technology companies channeling substantial capital into the United States. In return, the Trump administration has committed to reducing tariffs on Taiwanese goods. This strategic economic partnership is designed not only to strengthen bilateral ties but also to bolster U.S. industrial infrastructure, a move that could have far-reaching implications for technological innovation and manufacturing capabilities.
Despite the positive undertones from the tech sector, major Asian indices presented a more fragmented picture. In Tokyo, the Nikkei 225 experienced a slight dip, shedding 0.3% to close at 53,936.17. Similarly, Hong Kong’s Hang Seng index gave up 0.6%, settling at 26,770.56. The Shanghai Composite index also registered a modest loss of 0.3%, ending the day at 4,101.91. These movements occurred as China prepared to release its economic growth data for 2025 on Monday. Forecasts suggest an annual expansion of approximately 4.5%, indicating a moderation in growth compared to earlier periods.
In contrast, South Korea’s Kospi index defied the regional trend, reaching a new record high of 4,840.74, marking a 0.9% increase. The Kospi has been on a sustained upward trajectory for weeks, with its performance significantly bolstered by a renewed confidence in AI-related shares. A notable contributor to this surge was Samsung Electronics, which saw its stock price rise by 3.5%. This robust performance in South Korea highlights the broader investor enthusiasm for companies positioned to capitalize on the AI boom.
Australia’s S&P/ASX 200 index also ended the day in positive territory, gaining 0.5% to reach 8,903.90. India’s Sensex followed suit, adding 0.4% to its value. These gains across various Asian markets underscore the global nature of the current investment trends, with technology and economic recovery narratives driving sentiment.
The stability observed on Wall Street on Thursday was a crucial factor in the broader market’s sentiment. The rebound in AI-related stocks provided a much-needed boost, reversing earlier losses. The S&P 500 climbed 0.3%, while the Dow Jones Industrial Average registered a more significant gain of 0.6%. The tech-heavy Nasdaq composite also participated in the recovery, rising 0.2% to close at 23,530.02.
Adding to the market’s calm demeanor was the notable easing of oil prices. This decline in crude oil costs provided a welcome respite for investors, who had been monitoring geopolitical tensions closely. Early Friday trading saw a barrel of benchmark U.S. crude priced at $59.21, a slight increase of 14 cents from the previous day. However, this followed a substantial 4.6% drop on Thursday. The sharp decline in oil prices was largely attributed to comments from President Trump, who indicated that he had received reliable information suggesting a halt in executions in Iran amidst widespread protests against the country’s leadership.
International crude standard, Brent, also experienced a similar trend, adding 10 cents to reach $63.86 per barrel, after a 4.1% fall on Thursday. The market interpreted President Trump’s remarks regarding Iran as a signal that escalating tensions around some of the world’s most significant oil-producing regions might de-escalate. Such a development could potentially reduce the risk of disruptions to global oil supplies, a factor that has historically driven price volatility.
The earnings reporting season for major U.S. corporations continued to unfold, with several prominent financial institutions releasing their financial results for the final quarter of 2025. These reports are being closely watched by investors seeking insights into the financial health and future prospects of key companies.
Ipek Ozkardeskaya, a market analyst at Swissquote, offered a nuanced perspective on the current market dynamics, particularly concerning the technology sector. "As we dive into the heart of earnings season in the coming weeks, tech results will be scrutinized in far greater detail," Ozkardeskaya noted in a commentary. She further elaborated on the persistent concerns that continue to weigh on investor sentiment. "Concerns around circular AI deals, leverage and delayed returns on investment remain front of mind for investors. These are compounded by rising electricity and metals costs, higher memory-chip prices, and the risk of supply disruptions," she explained. This highlights the multifaceted challenges that technology companies are navigating, even amidst the current wave of optimism.
In a significant development demonstrating strong corporate performance, BlackRock, a titan in the investment management industry overseeing more than $14 trillion in assets, reported stronger-than-expected profits and revenue. This positive financial disclosure led to a substantial 5.9% surge in its stock price, signaling robust investor confidence in the company’s operational strength and strategic direction.
Encouraging economic data from the United States also contributed to the generally upbeat mood in financial markets. Reports indicated a decrease in the number of workers filing for unemployment benefits last week, suggesting a potential slowdown in layoffs. Furthermore, manufacturing activity in the mid-Atlantic region and in New York state significantly outperformed economists’ forecasts, pointing to a healthier industrial sector than anticipated.
These stronger-than-expected economic indicators from the U.S. provided a particular boost to the stocks of smaller companies. The profitability of these smaller firms is often more closely tied to the overall health of the domestic U.S. economy compared to their larger, multinational counterparts. Consequently, the Russell 2000 index, which tracks the performance of small-cap stocks, saw a notable increase of 0.9%, reflecting the positive impact of the robust economic data on this segment of the market.
In currency markets, the U.S. dollar experienced a slight depreciation against the Japanese yen, falling to 158.19 yen from 158.63 yen in early Friday trading. The euro, on the other hand, saw a marginal uptick, rising to $1.1614 from $1.1609. These currency movements reflect ongoing shifts in global capital flows and investor sentiment towards different economic blocs and currencies.
The ongoing earnings season, particularly the scrutiny of technology companies’ performance, will remain a key focus for investors in the coming weeks. While the AI narrative continues to drive significant market interest and investment, the underlying fundamentals of these companies, including their cost structures, investment returns, and supply chain resilience, will be critical in determining their long-term sustainability and continued market valuation. The interplay between technological innovation, macroeconomic trends, and geopolitical developments will undoubtedly continue to shape the trajectory of global financial markets.
