Asian equities advanced on Friday, led by South Korea’s KOSPI, but broader regional losses from the week persisted as global bond yields and elevated oil prices kept markets under pressure.
The MSCI Asia Pacific index rose 0.7% during the session, paring weekly declines to 0.7% after earlier losses of roughly 1.5%. South Korea’s KOSPI pared earlier losses to trade nearly 1% higher by the close, though it remained about 1% lower for the week. Tech shares led the rebound, with SK Hynix up 3% on Friday and about 7% for the week after announcing a 40 trillion-won share buyback program. Samsung Electronics also gained around 2% for the week amid reports of a potential 110 trillion-won shareholder return package.
The rebound followed a sharp drop in U.S. Treasury yields earlier in the week, though yields climbed again on Friday, with the 10-year yield around 4.701% and the 30-year near 5.252%. The U.S. budget deficit remained above 6% of GDP, while annual interest costs approached $1.2 trillion, adding to concerns over fiscal sustainability. Wall Street futures pointed to modest gains, with Nasdaq 100 futures up 0.6% and S&P 500 futures 0.2% higher.
Oil prices remained a key headwind, with Brent crude touching a one-month high of $94.71 before easing to around $93.12, leaving it more than 5% higher for the week. Diplomatic efforts in the Middle East showed little progress, and U.S. pressure on Iran, including threats of tougher sanctions, reduced expectations of a full reopening of the Strait of Hormuz. Geopolitical risks continued to support elevated crude prices.
Japan’s core consumer prices accelerated 1.8% year-on-year in July, fueling speculation that the Bank of Japan could raise rates as early as September. The Nikkei 225 fell 0.8% on Friday and was down 4.4% for the week. Elsewhere, Hong Kong’s Hang Seng gained about 3% for the week, while India’s Nifty 50 was modestly higher at the open but still about 0.4% lower for the week. Australia’s S&P/ASX 200 slipped 0.4%, and China’s Shanghai Shenzhen CSI 300 added 0.5%.
Corporate earnings also influenced regional markets. Alibaba shares fell 3% after reporting a more than 75% plunge in quarterly profit, with capital spending surging 75% to nearly $10 billion. Henderson Land gained more than 7% following upbeat first-half results. Bank Indonesia held its seven-day reverse-repurchase rate steady at 5.75%, while the Jakarta Stock Exchange Composite Index added 0.5% on Friday and was on track to close the week over 2% higher.
