Asian stock markets ended Friday’s session mixed as investors weighed easing geopolitical tensions, renewed optimism around artificial intelligence spending, and concerns about slowing growth in China.
Japanese equities once again led regional gains, while mainland Chinese shares struggled amid weaker sentiment surrounding industrial and property sectors.
Japan’s Nikkei 225 surged more than 2%, extending its record-setting rally as technology and semiconductor-linked stocks continued to attract strong investor demand. The rally was fueled by optimism surrounding global AI infrastructure spending and expectations that Japanese corporate earnings will remain resilient through the second half of the year.
Analysts also pointed to continued foreign inflows into Japanese equities after recent reforms aimed at improving shareholder returns.
Hong Kong’s Hang Seng Index finished modestly higher, supported by gains in technology and financial shares, while South Korea’s Kospi hovered near fresh record highs on continued strength in chipmakers and battery manufacturers.
Taiwan’s market also advanced as investors rotated back into major semiconductor names following strong overnight cues from Wall Street.
In mainland China, however, the Shanghai Composite slipped as traders reacted cautiously to lingering concerns about weak domestic demand and uneven economic recovery.
Investors continued monitoring Beijing for additional stimulus measures aimed at supporting the country’s property sector and manufacturing activity.
Markets across the region were also influenced by developments in the Middle East. Reports suggesting progress toward a potential US-Iran agreement helped ease fears of supply disruptions, pushing oil prices lower and improving risk appetite across global equities.
Lower crude prices also boosted airline and transportation stocks throughout Asia.
Meanwhile, investors continued watching central bank signals closely after softer inflation readings in several major economies increased expectations that interest rates could begin easing later this year.
Attention now turns to upcoming US economic data and earnings reports from major global technology companies, which are expected to shape market direction heading into June.
