Asian equities advanced, led by a rally in semiconductor companies, as investors brushed aside earlier concerns about Nvidia’s revenue outlook. Gold prices also surged.
Markets in Australia, Japan, and South Korea saw gains, with the MSCI Asia Pacific Index rising as much as 0.7%, buoyed by a rebound in regional technology stocks following Thursday’s selloff. Nvidia’s positive performance in the U.S. helped lift sentiment.
However, shares in Hong Kong and China continued to decline, with losses extending into midday trading. This followed a 1% drop in an index of U.S.-listed Chinese stocks on Thursday.
Asian markets are heading for their first consecutive monthly losses this year, weighed down by a strong U.S. dollar and ongoing concerns about China’s economic recovery.
Nevertheless, the region’s relatively attractive valuations compared to the U.S. market are supporting a recovery in some areas, even as U.S. bond yields climb.
The yen experienced fluctuations after initially edging higher early Friday, following inflation data that remained above the Bank of Japan’s target, as expected.
Meanwhile, in broader regional developments, investors are closely watching the fallout from a U.S. indictment against Gautam Adani over alleged bribery charges. Shares of Adani Group units plummeted, and the conglomerate canceled a planned $600 million bond sale. The company has denied the allegations.
