The MSCI Asia Pacific Index is poised for a fourth week of gains, during which time it had risen more than 7%. Regional shares were mixed Friday with losses in Japan, and gains in AI posterchild South Korea. That came after US equities recovered from their first back-to-back losses of the year, reviving confidence in the tech sector.
US and European equities got a boost Thursday, with a gauge of chipmakers climbing to a record after earnings from Taiwan Semiconductor Manufacturing Co. bolstered sentiment. The tech bellwether jumped 4.4% to a record close in US trading, lifting shares of Nvidia Corp. and ASML Holding NV.
Treasuries were little changed in Asia after falling in US trading when jobless claims unexpectedly dropped to the lowest since November. Oil steadied after comments from Donald Trump suggesting he may hold off on attacking Iran triggered a selloff. Gold and silver edged lower early Friday.
US stocks rebounded as the blowout outlook from TSMC renewed confidence in the durability of a key bull-market driver even as small caps climbed on signs of economic strength. The earnings also helped allay concerns over the sustainability of data-center spending amid a rotation out of richly priced technology shares.
“Technology stocks had looked vulnerable in recent weeks as investors rotated away from megacap names and into more cyclical areas of the market,” said Fawad Razaqzada at Forex.com. “TSMC’s update, though, appears to have stabilized that ‘rotation’ rather than reversed it outright.”
A run of stronger-than-expected economic data has helped shape a growing sense that conditions are improving, with investors chasing riskier parts of the market that typically benefit in that scenario.