Asian stocks mostly advanced Friday, putting regional markets on course for their strongest weekly performance since mid-June as softer US inflation data eased concerns over another Federal Reserve interest rate hike.
The rally followed gains on Wall Street, where the S&P 500 closed at a record high Thursday and the Nasdaq reached its highest level since late June. In Asian trading, Nasdaq 100 futures slipped around 0.1%, while S&P 500 futures remained largely unchanged.
Investor sentiment improved after US producer prices were flat in July, below expectations for a 0.2% increase. Annual producer price inflation also slowed to 4.7% from 5.5% in June. Fed funds futures now indicate roughly a 35% probability of a rate hike, down from 55% a week earlier.
The MSCI Asia Pacific index gained about 0.5%, heading toward a 2.7% weekly increase and its fourth consecutive week of gains. South Korea’s KOSPI climbed 1.6%, supported by semiconductor stocks, while Japan’s Nikkei 225 rose 0.7% and the TOPIX added 0.8%.
SK Hynix jumped 3.2%, extending its weekly gain beyond 15%, while Samsung Electronics advanced 0.9%. LG Innotek gained 4.1%. Japanese technology shares also strengthened, with Kioxia Holdings rising 3.4% and Sony surging 5.2%.
Chinese markets underperformed the broader Asian stock rally. The CSI 300 declined 0.12%, the Shanghai Composite fell 0.2%, and Hong Kong’s Hang Seng dropped 0.9%.
Chinese semiconductor giant SMIC gained 2.2% following earnings that highlighted strong artificial intelligence-related demand. However, major technology stocks struggled. Baidu fell 1.55%, Alibaba declined 2.3%, and Meituan sank 5.53%. JD.com plunged 10% after reporting its first year-on-year revenue decline in more than a decade, reinforcing concerns about weak Chinese consumer demand.
Elsewhere, Australia’s ASX 200 fell 0.9%, while India’s Nifty 50 opened 0.3% lower. Brent crude held near $87 a barrel and remained on track for a roughly 4% weekly gain amid renewed geopolitical tensions involving Iran.
