Asia-Pacific markets surged on Friday, July 31, as investors piled back into technology shares after blockbuster earnings from Microsoft and Amazon reignited optimism around artificial intelligence spending.
South Korea's Kospi soared more than 16%, rebounding sharply after a three-day rout, while Japan's Nikkei 225 jumped over 6%. Australia's S&P/ASX 200 gained 0.89%, lifting the broader MSCI Asia Pacific Index higher.
South Korea's chipmakers led the regional rally after Wall Street's semiconductor index logged its biggest one-day gain in over a year. SK Hynix surged more than 25%, putting it on track for its best trading day on record, while Samsung Electronics rallied over 20%. Other semiconductor-linked names including LG Innotek and Seoul Semiconductor also posted strong gains as investors revived bets on AI-driven demand.
Japanese technology stocks also rallied sharply. Advantest climbed nearly 18%, Tokyo Electron gained almost 9%, while Disco, Lasertec and Renesas Electronics advanced between 10% and 13%.
SoftBank Group, seen as a key AI proxy through its stake in Arm Holdings, jumped more than 9%. The rally marked a sharp reversal from this week's steep selloff that was driven by concerns over stretched AI valuations and rising competition from Chinese memory chipmakers.
AI Trade Revival
The rebound in Asian technology shares followed a powerful rally on Wall Street after stronger-than-expected earnings from Microsoft and Amazon reassured investors that spending on artificial intelligence infrastructure remains robust.
Microsoft added roughly $450 billion in market value in a single session, while Amazon surged nearly 10% after reporting accelerating cloud-computing revenue. Apple, however, fell more than 6% in after-hours trading after warning that supply shortages would weigh on sales.
BOJ Verdict In Focus
Investors are also awaiting the Bank of Japan's monetary policy decision later on Friday after the yen recorded its biggest gain against the US dollar in more than two years in the previous session following reported intervention by Japanese authorities.
The BOJ is widely expected to keep its benchmark interest rate unchanged at 1% after last month's hike, with markets instead focusing on Governor Kazuo Ueda's commentary for clues on the timing of the next rate increase. Updated economic forecasts and any remarks on the yen are expected to be closely watched by investors.
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