By Asian markets rose on Friday, reflecting optimism from Wall Street’s overnight rally, though underlying caution remained as the U.S. government shutdown cast a shadow over global investor sentiment.
In Tokyo, the Nikkei 225 climbed 1.7%, buoyed by strong gains in semiconductor and automation companies. Robotics and chip equipment makers continued to attract capital, reflecting growing demand for AI and next-generation technology worldwide. Analysts said Japan’s strong export momentum and corporate earnings optimism also supported the surge.
South Korea’s Kospi also moved higher, led by Samsung Electronics and SK Hynix, both key suppliers in the global semiconductor supply chain. Similarly, Taiwan’s Taiex registered gains, with chip and AI server manufacturers benefitting from robust global technology demand.
The Australian S&P/ASX 200 gained as commodity-linked stocks advanced alongside financials. Higher iron ore and copper prices lent further support to miners, while the banking sector benefited from stable domestic economic data.
Not all of Asia joined the rally. The Hang Seng Index in Hong Kong slipped, weighed down by losses in Chinese property and tech firms. Persistent concerns over debt levels among major developers and Beijing’s restrained support measures kept investors wary of committing heavily to the Chinese market.
The positive momentum came after Wall Street’s strong close, where the S&P 500 and Nasdaq Composite both reached new highs. Tech giants drove much of the rally, fueled by mounting speculation that the Federal Reserve may ease rates before year-end, bolstering global risk appetite.
Still, the enthusiasm was tempered by Washington’s political gridlock. The shutdown of the U.S. government meant that crucial economic data—including the highly anticipated September jobs report—would not be released, depriving markets of a key signal for Fed policy direction.
“Investors are enjoying the ride from Wall Street’s momentum,” said a strategist at a Seoul brokerage firm. “But the absence of reliable U.S. economic data could quickly turn this optimism into volatility if the shutdown drags on.”