Asian Stocks Rally as AI Spending Hopes Drive Chipmaker Rebound

Asian stocks advanced on Friday, driven by a sharp rebound in semiconductor shares as investor optimism around long-term artificial intelligence spending overshadowed concerns about escalating tensions in the Middle East.

Investors appeared to look past fresh military exchanges between the U.S. and Iran, refocusing on corporate investment signals that suggest the AI-driven capital expenditure cycle remains robust.

Chipmakers Lead Tech Rebound

South Korea's KOSPI index was a standout performer, surging 4.2% and recovering a portion of its sharp losses from earlier in the week. The rally was led by major chipmakers:

• Samsung Electronics Co Ltd (KS:005930) rebounded 4.9%.
• SK Hynix Inc (KS:000660), a key supplier to Nvidia, gained 1.5% after successfully pricing its $26.5 billion U.S. American depositary share (ADS) offering, which reportedly saw demand exceed the available shares by seven times.

Market sentiment was further bolstered by news from the U.S., where Micron Technology Inc (NASDAQ:MU) announced plans to increase its domestic investment to approximately $250 billion through 2035 to expand memory-chip production.

Broad Market Gains Across the Region

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The positive momentum extended across other major Asian markets. In Japan, the Nikkei 225 climbed about 2%, aided by reports that the country's Government Pension Investment Fund (GPIF) is considering a larger allocation to domestic stocks.

Hong Kong’s Hang Seng index rose 1.8%, while mainland China’s CSI 300 and Shanghai Composite indexes added 0.2% and 0.4%, respectively. In Australia, the S&P/ASX 200 gained 0.7%, supported by a rally in uranium miners after Australia and India agreed to deepen cooperation on uranium exports.

Geopolitical Risks and Economic Data in Focus

While investors largely shrugged off the renewed U.S.-Iran conflict, the situation remains a key risk factor for global oil supplies and market stability. The focus for the week ahead now shifts to a slate of key economic data that will provide further insight into the region's health.

Traders are awaiting China's second-quarter GDP, retail sales, and industrial production figures, alongside India's June inflation report and a policy decision from the Bank of Korea. These releases will be closely watched for signals on regional growth and diverging central bank policy paths.