(Sharecast News) - Asia-Pacific markets were mixed on Friday, with chip stocks leading gains after the United States reached a trade deal with Taiwan, lifting semiconductor sentiment across the region and pushing both Taiwan's Taiex and South Korea's Kospi to fresh record highs.
The agreement, under which Taiwanese semiconductor companies committed to invest at least $250bn in US production capacity in exchange for lower "reciprocal" tariffs, followed a strong overnight rally on Wall Street where chipmakers and banks led gains.
Patrick Munnelly, market strategy partner at TickMill, noted "risk sentiment was revitalised as markets advanced, alleviating concerns over inflated tech valuations," adding that "a chip industry giant reported stellar results, igniting fresh momentum in the ongoing record-breaking rally."
Optimism was further underpinned by a robust spending outlook from TSMC, with Munnelly highlighting that "Asian markets soared to new highs, climbing 0.5%, driven by TSMC's outstanding earnings, which rekindled investor enthusiasm for the AI boom."
South Korea's Kospi recorded its 11th consecutive day of advances.
Japan, China stocks in the red
In Japan, equities slipped as profit-taking weighed on shipping and retail stocks.
The Nikkei 225 fell 0.32% to 53,936.17, with Aeon down 5.26%, Kawasaki Kisen Kaisha lower by 5.17% and Mitsui OSK Lines easing 5.01%.
The broader Topix index declined 0.28%.
Mainland Chinese markets also edged lower.
The Shanghai Composite dropped 0.26% to 4,101.91, dragged down by sharp losses in China Fortune Land Development, which fell 10.23%, Shanghai Qiangsheng Holding, down 10.03%, and Xinhuanet, off 10.01%.
The Shenzhen Component slipped 0.18% to 14,281.08.
Looking ahead, Munnelly cautioned that "domestic demand remains weak despite fiscal support," noting that while January data may improve with government action, "state-driven credit compensates for weak household demand and fragile private sector confidence," leaving Chinese growth increasingly reliant on exports amid rising global competition.
Hong Kong shares weakened, with the Hang Seng Index down 0.29% at 26,844.96.
Pop Mart International Group declined 5.6%, Alibaba Health Information Technology fell 5.16%, and Orient Overseas International lost 4.98%.
South Korea benchmark outperforms
South Korean equities outperformed the region, buoyed by technology and industrial names.
The Kospi 100 rose 1.27% to a record 5,402.45, extending its winning streak to an 11th session.
Korea Zinc surged 10.22%, Posco ICT gained 8.67%, and Doosan Heavy advanced 6.48%.
Munnelly pointed out that "stocks have rebounded robustly from their April slump, supported by the Federal Reserve's interest rate cuts and heightened excitement over AI-driven profitability," a dynamic that has continued to favour technology-heavy Asian benchmarks.
Australia, New Zealand equities also higher
Australian stocks finished higher, supported by strength in defence, consumer and mining shares.
The S&P/ASX 200 added 0.48% to 8,903.90, with DroneShield jumping 7.84%, Treasury Wine Estates up 7.65% and Capstone Copper rising 7.05%.
New Zealand equities also advanced, with the S&P/NZX 50 up 0.43% at 13,718.10.
Fletcher Building climbed 3.18%, Westpac Banking Corporation gained 2.79% and Property for Industry rose 2.54%.
Data showed New Zealand's manufacturing sector returned to growth in November, as the BusinessNZ PMI edged up to 51.4, above the key 50 threshold but still below its long-term average of 52.4.
Production and hiring improved for the first time since April amid stronger holiday demand, although delivery times lengthened, highlighting ongoing supply-chain pressures.
Dollar weakens as oil prices rebound
In currency markets, the dollar weakened, last trading down 0.35% on the yen at JPY 158.08, as it fell 0.14% against the Aussie to AUD 1.4907 and retreated 0.4% from the Kiwi to change hands at NZD 1.7345.
Munnelly noted that "the yen appreciated against the dollar after Japan's finance minister expressed concerns over its recent depreciation."
Oil prices rose, with Brent crude futures last up 1.1% on ICE at $64.46 per barrel and the NYMEX quote for West Texas Intermediate gaining 1.1% to $59.84.
Reporting by Josh White for Sharecast.com.
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