Asian equities surged to record levels on Friday, driven by a strong rally in technology stocks after robust earnings from a major semiconductor player eased concerns about overheating in the artificial intelligence (AI) sector.
The MSCI Asia Pacific Index rose 0.5 per cent to a new all-time high and was on track for a fourth consecutive weekly gain. A regional index of technology shares also climbed to record territory, alongside South Korea’s benchmark stock index, which is widely seen as a bellwether for the AI investment theme.
Market sentiment was buoyed by shares of Taiwan Semiconductor Manufacturing Company (TSMC), which jumped about 3 per cent to a record high following better-than-expected earnings results. The strong performance from the chipmaking giant reassured investors about the sustainability of AI-related demand and encouraged fresh bets on technology stocks.
Optimism extended to global markets, with futures on the Nasdaq 100 Index rising 0.4 per cent, signalling continued strength in U.S. technology shares.
In currency markets, the Japanese yen gained 0.2 per cent against the U.S. dollar after Japan’s finance minister expressed concern over the currency’s recent weakness, raising expectations of closer monitoring or potential intervention.
Meanwhile, oil prices steadied after posting their biggest decline since June, while precious metals also edged lower, with both gold and silver recording modest losses.
Market analysts noted that renewed confidence in the durability of the tech-led rally has helped push equities higher, despite earlier concerns over stretched valuations and heavy capital investment in the sector. Investors now appear increasingly comfortable that strong earnings growth can justify current market levels.
