Asian Equities Rebound as Tech Stabilizes
Asian stock markets rebounded on Friday following a stabilization in the U.S. Nasdaq composite index, with traders shifting focus to relative values after a week of declines in the technology sector. Major regional exchanges in Hong Kong, Shanghai, and Tokyo finished in positive territory, while most other markets in the region also closed higher.
Asian stock markets rebounded on Friday following a stabilization in the U.S. Nasdaq composite index, with traders shifting focus to relative values after a week of declines in the technology sector. Major regional exchanges in Hong Kong, Shanghai, and Tokyo finished in positive territory, while most other markets in the region also closed higher.
In Japan, the Nikkei 225 index opened higher and maintained its gains throughout the session. The benchmark closed up 1.4%, rising 898.34 points to finish at 65,324.29. Market breadth was positive, with 193 stocks gaining against 29 losers. Investors returned to artificial intelligence and semiconductor-related shares following their recent drop. BayCurrent, a consultancy firm, led the index gains with a 17.3% jump after releasing its second-quarter results. In contrast, entertainment company Toho fell 2.3%.
The Hang Seng Index in Hong Kong opened higher and closed up 0.5%, supported by strength in technology and property sectors. The index rose 124.11 points to reach 24,186.83, with 60 gainers and 33 losers on the board. The Hang Seng TECH Index gained 1.2% for the day, while the Mainland Properties Index climbed 2.9%. Computer manufacturer Lenovo led the market with an 8% increase, whereas China Life declined 2.9%.
On the mainland, the Shanghai Composite index rose 0.2% to close at 3,716.28. Other regional benchmarks also posted gains, with South Korea's KOSPI index rising 2.1%. The Taiwan TWSE increased by 0.3%, and the Australian ASX 200 climbed 1%. Singapore's Straits Times Index rose 0.2%. Trading floors in Bangkok were closed for a holiday. In late trading in Mumbai, the Sensex index was up 0.6%. The MSCI All Country Asia Pacific Index rose 1.2% on the day.
Elsewhere in Asia, Indonesia's Jakarta Market Index slumped 11.6%. This sharp drop followed a report by The Straits Times stating that MSCI, an index-maker and financial services firm, determined that Indonesia is no longer worthy of emerging market status. MSCI has disclosed plans to remove Indonesia from a suite of indexes tracked by money managers. This action could reduce passive money flows into Indonesian stocks.