Global markets mostly advanced on Friday, with Asian equities extending gains at the end of a strong week driven by renewed optimism around artificial intelligence investments and chipmakers.
After two years of surging valuations fueled by enthusiasm for artificial intelligence, Wall Street technology giants known as the Magnificent Seven have struggled to maintain momentum in 2026. Concerns over stretched valuations and long term profitability have tempered investor appetite, even as companies continue to post strong earnings.
Chipmaker Nvidia recently reported that quarterly profits more than doubled and projected solid growth ahead. However, the stock still faced pressure as analysts noted that expectations had already been priced in. Market watchers say firms must significantly outperform already high forecasts to sustain investor confidence.
The rotation away from downstream technology firms such as app developers toward upstream semiconductor manufacturers has particularly benefited Asian markets, where many leading chip producers are based.
In Japan, the Nikkei 225 closed 0.2 percent higher at 58850.27. Hong Kong Hang Seng Index gained 1.0 percent, while the Shanghai Composite rose 0.4 percent. Sydney, Singapore, Bangkok and Wellington also ended in positive territory.
South Korea market slipped 1 percent despite a strong weekly performance driven by gains in Samsung Electronics and SK hynix. Investors also monitored developments at the Bank of Japan, where policymakers signaled a possible continuation of interest rate hikes even as Tokyo inflation showed signs of easing.
In the United States, the Nasdaq fell more than 1 percent, reflecting ongoing caution around technology valuations. Meanwhile, oil prices edged higher as traders followed diplomatic efforts over Iran nuclear talks.
Overall, investors appear to be balancing optimism over artificial intelligence infrastructure spending with caution about valuation risks and global economic uncertainty.
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