Asian equity markets ended Friday on a strong note, led by technology and semiconductor shares as investors largely looked beyond renewed geopolitical tensions in the Middle East. Confidence in artificial intelligence continued to dominate market sentiment, with Japan’s Nikkei and South Korea’s KOSPI among the day’s strongest performers.
Technology leads the way
The region’s rally was fuelled by optimism surrounding the AI sector following the successful US listing of SK Hynix and continued expectations of robust demand for advanced semiconductors. Investors focused on the long-term growth story rather than short-term geopolitical uncertainty.
Japan’s Nikkei posted solid gains, while South Korea’s KOSPI outperformed thanks to strength across chipmakers and electronics companies. Chinese markets also finished higher, although gains were more modest as investors awaited upcoming economic data, including trade figures and second-quarter GDP.
Oil tensions fail to derail markets
Although renewed attacks involving the US and Iran continued to keep oil markets on edge, investors appeared increasingly confident that any disruption to global energy supplies would remain contained. Brent crude remained elevated but well below the peaks seen during the initial escalation.
The resilience demonstrated by Asian equities reflected a broader market belief that AI-driven corporate earnings may outweigh geopolitical risks in the near term.
Looking ahead
Attention now turns to next week’s earnings season, with Taiwan Semiconductor Manufacturing Company (TSMC) expected to provide one of the most closely watched updates on global AI demand. Investors will also monitor Chinese economic data for further clues about the region’s recovery.
Newshub Editorial – Asia, 11 July 2026
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