SYDNEY—Asian stocks climbed on Friday as investors took encouragement from gains in technology shares while closely monitoring developments involving Iran that continued to influence oil prices and broader market sentiment.
Regional equities advanced after semiconductor stocks extended a global rally, helping offset caution over renewed geopolitical tensions in the Middle East. Investors also assessed the implications of recent developments involving Iran for global energy supplies, although oil prices eased from earlier highs as fears of an immediate escalation moderated.
Japan's Nikkei rose about 1.2%, supported by technology shares, while South Korea's Kospi outperformed with gains of roughly 2.5%, buoyed by optimism surrounding semiconductor companies. India's benchmark Sensex also traded higher, while Chinese markets lagged, with the Shanghai Composite edging lower.
Market participants said enthusiasm for artificial intelligence-related investments continued to underpin chipmakers after strong industry announcements and fundraising activity. South Korean chipmaker SK Hynix remained a focal point ahead of its U.S. market debut, while Micron Technology's plans for expanded long-term investment in U.S. semiconductor manufacturing also supported sentiment across the sector.
Oil prices slipped modestly during Friday's session but remained on course for solid weekly gains after heightened tensions involving Iran earlier in the week raised concerns about potential disruptions to energy flows through the Strait of Hormuz, one of the world's most important oil shipping routes. Brent crude eased during the session after recent sharp advances, reflecting investor expectations that supply disruptions had not yet materialized despite continuing uncertainty.
Currency markets also remained active. The Japanese yen strengthened following comments from Japan's finance minister indicating efforts to encourage greater domestic investment by pension funds, a move investors viewed as supportive of the currency after a prolonged period of weakness. Government bond yields were little changed as traders balanced geopolitical risks against expectations for future central bank policy.
Analysts said investors remained sensitive to headlines surrounding Iran and the broader Middle East because any sustained disruption to oil exports could affect inflation expectations and monetary policy globally. At the same time, continued strength in technology shares has helped cushion broader equity markets from geopolitical volatility.
Attention is now turning to upcoming economic data and further developments in the Middle East, with traders watching for official statements that could provide greater clarity on the geopolitical outlook and its potential impact on global financial markets.
