Asian equities rose, tracking gains on Wall Street as dip buyers stepped in following a chip-stock selloff fueled by concerns about the artificial intelligence trade.
The MSCI Asia Pacific Index advanced 0.6%, led by stocks in South Korea. Chip stocks rose with Samsung Electronics Co. and SK Hynix Inc. both edging higher. Earlier, the S&P 500 erased losses and edged up to close 0.3% higher on Thursday.
A tone of caution prevailed as contracts for US benchmarks edged lower in early Asian trading. Futures for the Nasdaq 100 Index fell 0.5%. On Thursday, American depositary receipts of Taiwan Semiconductor Manufacturing Co. fell 1.8% after its upbeat outlook failed to quash AI buildout concerns.
Treasuries rallied on haven demand driven by this week’s sharp swings in global stocks and credit markets. The yield on the benchmark 10-year fell 13 basis points to 5.06% in the New York session. Treasury futures edged higher on Friday with Federal Reserve Chairman Kevin Warsh set to speak in a fireside chat with IMF Managing Director Kristalina Georgieva in Bangkok.
Indonesian stocks will be in focus after the country faced a potential ejection from global stock indexes. Traders will also monitor Chinese markets with the European Union preparing to create new trade powers that could completely shut off access to its single market as part of a dramatic new push to cut the trade deficit with China.