Most Asian stocks saw gains on Friday, buoyed by positive sentiment in the technology sector following strong earnings from Apple Inc. However, trading volumes were subdued due to holidays in Japan and China, limiting overall market movement.
Taking cues from Wall Street’s positive performance, particularly in the tech sector, Asian markets showed resilience despite concerns about persistently high U.S. interest rates. Investors were awaiting the release of nonfarm payrolls data later in the day for further insights into the trajectory of interest rates.
Tech-heavy indices like Hong Kong’s Hang Seng index led the gains, climbing 1.4% for the day and emerging as the top performer in the region for the week. Stimulus measures in China, particularly in the real estate sector, contributed to the strong performance of property stocks.
In South Korea, the KOSPI edged up by 0.1%, while Australia’s ASX 200 rose by 0.6%, propelled by gains in the technology sector.
Following Apple’s better-than-expected earnings report, Asian suppliers of the tech giant experienced a surge in their stock prices. Taiwan-based companies like TSMC and Hon Hai Precision Industry (Foxconn) saw their shares rise by 1.5% and 2.3% respectively.
In Hong Kong, AAC Technologies Holdings Inc recorded a gain of over 3%, while South Korean tech giants such as Samsung Electronics Co Ltd, SK Hynix Inc, and LG Innotek Co Ltd registered increases ranging from 0.5% to 5.2%.
However, trading activity in broader Asian markets remained subdued due to regional holidays and cautious sentiment regarding U.S. interest rates.
Looking ahead, investors awaited the release of nonfarm payrolls data, which has consistently surpassed market expectations in recent months, indicating strength in the U.S. labor market. The Federal Reserve’s stance on interest rates, despite inflation concerns, was also under scrutiny, with market participants monitoring for any clues about future policy decisions.
