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Asian Tech Stocks Climb on Alphabet Earnings and AI Optimism

Asian Tech Stocks Climb on Alphabet Earnings and AI Optimism. Source: 中文(臺灣):​中華民國總統府, CC BY 2.0, via Wikimedia Commons

Asian stock markets mostly advanced on Friday, driven by a rally in tech shares after Alphabet’s strong earnings and bullish AI outlook. The U.S. tech giant beat earnings expectations and reaffirmed its commitment to artificial intelligence, boosting global investor sentiment and lifting Nasdaq 100 futures by 0.5% during Asian trading.

Japan’s Nikkei 225 led regional gains, rising 1.4% despite hotter-than-expected Tokyo inflation, which raised prospects of further Bank of Japan rate hikes. Optimism around upcoming U.S.-Japan trade talks also buoyed Japanese markets, with the broader TOPIX gaining 1.1%.

Technology-heavy indexes, including South Korea’s KOSPI and Hong Kong’s Hang Seng, rose between 0.6% and 1.2%, following Alphabet’s performance. The positive momentum was further supported by Amazon and Nvidia’s outlooks, which highlighted strong, AI-driven demand for chips and data centers.

Baidu shares surged 4% in Hong Kong after unveiling upgrades to its Ernie AI model. BYD also gained 0.7% ahead of its quarterly earnings release.

In contrast, Chinese mainland stocks underperformed, with the CSI 300 and Shanghai Composite trading flat. Lingering concerns over U.S.-China trade tensions weighed on sentiment, especially after mixed messages on negotiations. While President Trump claimed talks were underway, Chinese officials denied any formal engagement, casting doubt on progress.

Broader Asian markets were mixed. Singapore’s Straits Times Index slipped 0.5%, and India’s Nifty 50 futures indicated a muted open. Australian markets remained closed for a public holiday.

Overall, AI momentum and tech earnings lifted Asian equities, but geopolitical uncertainty and inflationary pressures remain key risks for investors navigating the region’s markets.

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