Tech Stocks Rise as Yen Pares Gains and Korea Soars – Asia Market Wrap

Global technology stocks rebounded sharply as investors returned to the AI trade following this week’s heavy selloff. South Korea’s Kospi surged as much as 17%, marking a record rally, with Samsung and SK Hynix both jumping more than 23%. TSMC also gained 10%, making chipmakers the biggest contributors to gains across MSCI’s Asia Pacific Index.

The rebound followed the strongest rally in US semiconductor stocks in more than a year. Nasdaq 100 futures rose 1.1% after the index snapped a six-day losing streak, while Amazon climbed 9.5% in after-hours trading following strong earnings. Apple, however, fell more than 6% after warning that supply shortages would weigh on sales.

In currency markets, the Yen weakened after giving back part of Thursday’s intervention-driven gains. The BoJ left interest rates unchanged, as expected, prompting further losses in the Japanese currency. Meanwhile, Treasuries advanced alongside the Dollar, while oil prices extended their recent decline.

The recovery in AI-related shares was also supported by renewed buying from investors after this week’s sharp correction. Companies that had previously been among the largest holdings of Situational Awareness posted strong gains after the hedge fund had reduced exposure during the recent selloff.

The sharp rebound suggests investors remain confident in the long-term AI theme despite recent volatility, with markets continuing to distinguish between short-term valuation concerns and the sector’s longer-term growth prospects.