Asian stocks mostly fell on Friday as investors locked in profits from the region’s recent tech rally, while South Korea’s KOSPI Index surged to a record high after reopening from a week-long holiday.
The region tracked overnight weakness on Wall Street, where major U.S. indexes pulled back from record highs amid a pause in tech momentum. Market sentiment was also dampened by the ongoing U.S. government shutdown, which has delayed key economic reports. Still, S&P 500 futures rose 0.2% in Asian trading, buoyed by optimism over a potential Fed rate cut in October and progress toward a Gaza ceasefire deal.
In Japan, the Nikkei 225 fell 1% and the TOPIX lost 1.7% as stronger producer price inflation reignited concerns about further Bank of Japan tightening. Losses were limited, however, as investors expect incoming Prime Minister Sanae Takaichi to pursue fiscally dovish policies.
Chinese markets slipped modestly after early-week gains, with both the CSI 300 and Shanghai Composite lower. Hong Kong’s Hang Seng Index dropped nearly 1%, led by declines in tech and biotech names. Semiconductor maker SMIC tumbled 5.2%, while Wuxi AppTec and Wuxi Biologics fell as much as 3% after the U.S. defense bill restricted investment in Chinese biotech firms.
Elsewhere, the Straits Times Index in Singapore fell 0.2%, Australia’s ASX 200 was flat, and India’s Nifty 50 futures rose 0.2% ahead of key tech earnings.
The standout performer was South Korea, where Samsung Electronics surged 5.1% and SK Hynix jumped 6.6% after signing a new AI chip supply agreement with OpenAI, pushing the KOSPI up 1.5% to 3,617.86, an all-time high.