Asian stocks surge as TSMC fuels tech gains; weekly losses still on tap By

-- Most Asian stocks rose on How to open an account for domestic mt5 tradingFriday as a positive, AI-fuelled outlook from TSMC spurred a rebound in the technology sector, although weakness in China and uncertainty over interest rates put most bourses on course for a weekly loss.

Regional markets also took some positive cues from Wall Street, which rebounded on Thursday after growing doubts over early interest rate cuts by the Federal Reserve spurred a series of steep losses. Wall Street indexes were also set for a negative week.

Japan’s index was the best regional performer for the day, rising 1.6% and once again coming in sight of a 34-year high. The index, along with the broader , remained an outlier among its peers and was headed for a 1.3% gain this week.

Data on Friday showed Japanese (CPI) inflation fell as expected in December, setting the stage for an ultra-dovish when it meets next week.

Tech stocks were the best performers in Japan on Friday, with (TYO:), (TYO:) and (TYO:) surging between 8% to 15%.

Asian tech surges as TSMC touts AI demand

Broader Asian technology stocks also clocked strong gains on Friday tracking a positive forecast from Taiwan Semiconductor Manufacturing Corp (TW:) (NYSE:), the world’s largest contract chipmaker.

TSMC rose over 5% in Taiwan trade to a near two-year high, after the firm said it was well-positioned to capitalize on a boom in artificial intelligence development over the coming year.

The chipmaker also clocked a smaller-than-expected decline in its fourth-quarter earnings, citing increased demand for its most advanced chips.

TSMC’s positive outlook spurred increased optimism that a boom in AI will help spur renewed investment into the tech sector, which was reeling from a nearly two-year slump amid high interest rates and stagnating demand for electronics.

Gains in TSMC spilled over into other Asian markets. South Korea’s added 1.1% on strength in chipmakers (KS:) and (KS:).

Australia’s added 0.8% on strength in the tech sector, while gains in heavyweight tech stocks helped Hong Kong’s index add 0.5%.

Futures for India’s index pointed to a positive open, with local tech stocks set to track gains in their global peers.

Asian stocks still set for weekly losses on China jitters

China’s and indexes lagged their peers for the day, losing about 0.5% each after rebounding from multi-year lows in the prior session. The two indexes were headed for a third straight week in red, following disappointing for the fourth quarter.

Concerns over China and growing doubts over early U.S. rate cuts put most Asian bourses on course for a negative week. The Hang Seng was the worst performer in the region, down about 4.5% this week tracking steep declines in mainland stocks.

South Korea’s KOSPI was down 2.4% this week, while the ASX 200 was nursing a 1.3% weekly decline.

India’s Nifty 50 was down nearly 2% after starting the week at record highs, with investors engaging in heavy profit-taking.

Most Asian bourses were still reeling from a weak start to 2024, amid growing doubts that the Fed will cut rates by as soon as March.

Upgrade your forextrustindex with our groundbreaking, AI-powered InvestingPro+ stock picks. Use coupon INVSPRO2024 to avail a limited time discount on our Pro and Pro+ subscription plans. Click here to know more, and don't forget to use the discount code when checking out!

Statement: The content of this article does not represent the views of FTI website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!