Most Asian stock markets traded within a narrow range on Friday, while South Korea’s KOSPI came under pressure as the recent technology rally began to lose momentum.
Investors also remained cautious ahead of Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole Symposium, where markets are hoping for fresh clues on the outlook for U.S. interest rates.
Asian Stocks Take Limited Support From Wall Street
Regional markets received a mildly positive lead from the previous U.S. session.
Nvidia shares rallied after the chipmaker reported stronger-than-expected quarterly earnings, helping lift the Nasdaq and supporting sentiment toward technology stocks.
However, Wall Street finished the session largely flat as traders turned cautious ahead of Warsh’s Jackson Hole remarks.
U.S. stock futures also showed little movement during Asian trading hours.
Investors will be watching Warsh closely for any comments on interest rates, especially after recent Treasury intervention in the bond market.
KOSPI Falls as Chip Stocks Retreat
South Korea’s KOSPI was the weakest major Asian index on Friday, falling around 1.8%.
The decline was driven by losses in heavyweight semiconductor stocks.
SK Hynix and Samsung Electronics both dropped more than 3% as investors took profits following their recent gains.
The two chipmakers had rallied after Nvidia’s earnings highlighted continued strength in artificial intelligence-related memory demand.
Despite that earlier boost, the KOSPI was still heading toward a modest weekly decline.
AI Valuations Remain a Concern
Investors continue to question whether valuations across the AI and semiconductor sectors have become too stretched.
Recent shareholder return plans from SK Hynix and Samsung provided only limited support to their share prices.
Technology stocks also remain highly sensitive to changes in U.S. interest-rate expectations.
Recent volatility in the bond market has increased pressure on growth stocks, which tend to react strongly to movements in long-term yields.
Nikkei and TOPIX Outperform
Japanese stocks performed better than most regional markets.
The Nikkei 225 rose around 0.3%, while the TOPIX gained approximately 0.8%.
Investor sentiment improved after Tokyo consumer inflation data for August came in broadly in line with expectations.
Headline inflation edged slightly higher, while core inflation remained close to the Bank of Japan’s 2% annual target.
BOJ Rate Hike Expectations Remain in Focus
The latest inflation data added to speculation that the Bank of Japan could raise interest rates again in the near future.
Producer-side inflation has also increased sharply in recent months, adding further pressure on policymakers.
As a result, investors are continuing to monitor upcoming economic data for clues about the BOJ’s next move.
Chinese Markets Trade Sideways
Chinese stock markets showed limited movement on Friday.
The CSI 300 slipped around 0.1%, while the Shanghai Composite gained 0.1%. Hong Kong’s Hang Seng Index rose approximately 0.3%.
Mainland Chinese markets were still on track to gain more than 1% for the week, supported by several positive corporate earnings reports.
Attention is now turning toward Chinese purchasing managers index data due next week, which could provide fresh insight into the health of the world’s second-largest economy.
Australia, Singapore and India Edge Higher
Elsewhere in Asia, Australia’s ASX 200 advanced around 0.5%.
Singapore’s Straits Times Index gained approximately 0.2%, while India’s Nifty 50 rose around 0.3%.
Overall, Asian stocks remained cautious as investors balanced optimism over AI-related earnings against concerns about high technology valuations and uncertainty surrounding U.S. interest rates.
