BEIJING (dpa-AFX) - Asian stocks advanced on Friday, with South Korean and Japanese markets skyrocketing as investors returned to AI stocks.
Regional gains elsewhere across Asia were limited as Middle East tensions persisted, China manufacturing data disappointed and uncertainty prevailed over the U.S. interest-rate outlook.
The dollar gained some positive traction as the yen sank following the Bank of Japan's decision to keep rates on hold.
The 30-year U.S. Treasury yield hovered near 19-year highs while short-end yields eased, steepening the curve amid growing doubts over the Federal Reserve's ability to keep inflation in check.
Gold traded below $4,100 an ounce in Asian trade but headed for its first monthly gain in five months.
Brent crude futures eased below $86 a barrel but were still on track to gain more than 20 percent for the month.
A drone strike on gas vessels at Egypt's Damietta port has intensified fears of the U.S.-Iran conflict widening across the Middle East, drawing more countries into the roughly five-month-old war and posing threats to navigation through the Suez Canal, one of the last remaining export routes for Saudi oil.
After claiming a retaliatory attack on a U.S. base in Kuwait, Iran's Islami Revolutionary Guard Corps said that Tehran's military actions would persist until the complete eviction of U.S. 'occupying and looting forces' from the region.
China's Shanghai Composite index rose 0.72 percent to 3,832.26 despite lingering concerns over slowing economic growth.
Hong Kong's Hang Seng index finished marginally higher at 25,884.43, recovering early losses as an official survey showed China's manufacturing activity unexpectedly slipped into contraction in July after five months of expansion, adding to signs of strain in the wider economy.
Japanese markets rallied as the yen reversed some of Thursday's over 2 percent surge sparked by an apparent coordinated currency intervention from various authorities to haul the currency away from 40-year lows.
The Nikkei climbed 4.03 percent to 64,362.02 following recent consecutive declines. The broader Topix index closed 1.29 percent higher at 4,003.30 as the Bank of Japan left its policy rate unchanged at 1.00 percent and readings on retail sales and factory output painted a mixed picture of the economy.
Tech stocks delivered a strong performance, with flash memory maker Kioxia Holdings surging almost 18 percent after reporting blockbuster Q1 earnings. Technology investor SoftBank Group jumped 13.8 percent.
Seoul stocks skyrocketed as chip stocks staged a dramatic rally following stronger-than-expected cloud results from U.S. tech giants Microsoft and Amazon.
The Kospi index soared 1,001.89 points, or 17.91 percent, to 6,595.45, posting record gains in both percentage and point terms after SK Group Chairman Chey Tae-won disclosed that he had bought 3,620 SK Hynix shares worth about 4.9 billion won on the open market.
SK Hynix shares soared almost 30 percent while those of Samsung Electronics jumped 26.8 percent, erasing losses from the previous three sessions.
Australian markets eked out marginal gains to cap their best showing in five months as rate hike worries faded. The benchmark S&P/ASX 200 inched up 0.10 percent to 8,976.80 and ended the month with a 2.3 percent gain.
The broader All Ordinaries index closed up 0.16 percent at 9,137, led by materials, real estate and information technology stocks.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dropped 0.46 percent to 13,699.28.
U.S. stocks rose sharply overnight following a sharp decline in the previous session after the Fed's interest-rate decision.
The tech-heavy Nasdaq Composite soared 2.8 percent as Microsoft's robust earnings helped ease concerns around tech companies' massive AI infrastructure investments. The S&P 500 rallied 1.7 percent and the Dow climbed 1.2 percent.
In economic news, data showed U.S. economic growth slowed to 1.5 percent in the second quarter as the trade deficit widened.
Headline annual PCE inflation, closely tracked by the Federal Reserve, cooled in June but remained well above the central bank's target.
Jobless claims increased less than expected last week, suggesting stable labor market conditions.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
