Stocks gained on the last trading day of the week on renewed optimism over AI-driven demand, brushing aside the latest flare-up in Middle East tensions. Comments from Japanese Finance Minister Satsuki Katayama sent the yen higher.
MSCI’s Asia Pacific equities gauge rose 1.7%, trimming losses for the week to less than 1%. Hong Kong’s Hang Seng Index climbed 1.9%, heading for its best week in more than a year. South Korea’s Kospi — a bellwether for AI investments — jumped 5%, with SK Hynix Inc. among the winners after its $26.5 billion American depositary share offering.
Elsewhere, Japan’s longer-maturity sovereign bonds rose after Katayama said the government wants to encourage pension funds to increase investment in domestic financial assets.
The yen gained 0.5% to about 161.65 per dollar. Bloomberg’s gauge of the US currency fell, heading for a second weekly decline. Treasuries rose for a second day, with the benchmark 10-year yield falling one basis point to 4.54%.
Gains came as crude oil steadied around $76.70 a barrel after traders judged the US-Iran conflict was unlikely to escalate into a broader disruption to energy supplies.With Middle East tensions appearing contained, investors returned to technology shares on renewed confidence that the AI investment boom remains intact.
After a pullback earlier this week, investors saw an opportunity to buy the dip, betting the upcoming earnings season will reinforce expectations for resilient AI-driven growth.
