Asian equity markets were mixed on Friday, as gains in technology shares driven by upbeat earnings from chipmaking heavyweight TSMC were offset by weakness in other sectors, limiting broader advances.
Regional markets took a mildly positive cue from Wall Street, where strength in technology and banking stocks helped end a two-day losing streak. S&P 500 futures were up 0.3% by 00:10 ET (05:10 GMT), with investor attention shifting to a busy slate of major U.S. corporate earnings scheduled for next week.
Global geopolitical risks also remained in focus, with ongoing unrest in Iran and a U.S. incursion into Venezuela weighing on overall risk appetite and keeping market optimism in check.
Asian tech stocks advance as TSMC hits record high
Technology-focused markets across Asia moved higher, led by South Korea, where the KOSPI climbed more than 1%. Samsung Electronics surged 3.5%, while SK Hynix gained 0.8%.
The rally followed stronger-than-expected fourth-quarter results from TSMC, the world’s largest contract chipmaker, which reaffirmed that demand tied to artificial intelligence remains robust. TSMC shares rose 2.1% to a record high in Taiwan trading after its U.S.-listed shares jumped more than 4%.
Widely seen as a bellwether for global chip and AI demand, TSMC’s earnings provided a broad lift to regional technology stocks.
Tech shares in Japan and Hong Kong also advanced, though gains were capped by losses elsewhere. Japan’s Nikkei 225 slipped 0.5%, extending a pullback from record highs earlier in the week, while Hong Kong’s Hang Seng finished flat.
Both markets saw some profit-taking after a strong start to the year, with lingering concerns over a diplomatic dispute between China and Japan adding to caution.
China stocks ease as regulation tightens; GDP data awaited
Chinese equities edged lower, with the CSI 300 and the Shanghai Composite both down around 0.2%, extending losses after retreating from multi-year highs earlier in the week.
Beijing on Friday tightened restrictions on high-frequency trading, calling for the removal of servers used for automated trades. The move followed a recent increase in margin trading requirements aimed at curbing speculation and reducing market risk.
Investor reaction was largely negative, reflecting concerns over increased government intervention in China’s capital markets. Mainland stocks have fallen sharply this week despite signs of modest improvement in December economic data, particularly consumer spending.
Attention is now firmly on China’s fourth-quarter gross domestic product figures due on Monday, which are expected to show an acceleration in growth supported by ongoing stimulus measures and year-end holiday spending. Markets will be watching closely to see whether the economy met Beijing’s annual growth target of around 5%.
Broader Asian markets mixed
Elsewhere in the region, Australia’s ASX 200 rose 0.6%, led by gains in bank stocks that tracked strong performances by U.S. peers following upbeat earnings from Goldman Sachs and Morgan Stanley.
Singapore’s Straits Times Index added 0.3%, despite data showing a sharper-than-expected monthly drop in non-oil exports in December.
In India, the Nifty 50 climbed 0.7% in morning trade, recovering part of the previous session’s losses that were driven by concerns over weakening trade relations with the United States.
