(Sharecast News) - Asia-Pacific markets mostly rose on Friday, with South Korea leading gains as technology stocks rebounded sharply despite weakness in US semiconductor names overnight.
"Weak jobs data is lifting stocks, AI is back in vogue, Korea has swung from cliff-edge to melt-up, and gold is thriving on rate relief," said Patrick Munnelly, market strategy partner at TickMill.
"But the payrolls miss is not the clear all-clear that doves want."
Global stock markets were mixed, tracking moves on Wall Street in New York's final trading session of the week, while US markets were closed on Friday for the Independence Day holiday.
Overnight, US stocks ended mixed, with the Dow Jones Industrial Average closing at a record high after a softer-than-expected June jobs report fuelled hopes for Federal Reserve rate cuts.
The Nasdaq, however, was dragged lower by weakness in semiconductor stocks.
Munnelly said global equities had rebounded sharply as investors rotated back into technology and pared expectations for further Fed hikes.
"The move reverses part of the recent AI-driven drawdown and suggests investors are still willing to buy weakness in the sector when rates pressure eases," he said.
"The key distinction is that the rally is being powered by lower discount-rate anxiety as much as renewed conviction in earnings."
Korean technology stocks rebounded strongly, with SK Hynix paring early losses to jump 10.88%, while Samsung Electronics also extended gains.
The moves helped push South Korea's benchmark Kospi up more than 6%, triggering a trading "sidecar" halt during the session.
"South Korea was the standout reversal," Munnelly said.
"The Kospi surged 5% after briefly flirting with bear-market territory, with semiconductors once again doing the heavy lifting."
Munnelly said the rebound showed how binary the AI hardware trade had become, with stocks that looked like the epicentre of valuation stress one session earlier once again treated as the cleanest listed proxies for the AI infrastructure cycle.
"That does not mean the volatility warning has disappeared," he said.
"The Korea move tells us positioning is still crowded, liquidity is still sensitive, and investors are still quick to chase AI-linked news flow."
The regional technology rally also extended to Hong Kong, where Knowledge Atlas, the Hong Kong-listed company behind Zhipu, rose nearly 10% and Manycore Tech jumped 8%.
In Japan, memory-chip maker Kioxia Holdings staged a recovery after falling almost 12% at the open, closing 9.23% higher.
Oil prices were little changed, with Brent crude futures last up 0.08% on ICE at $71.86 per barrel, while the NYMEX quote for West Texas Intermediate slipped 0.13% to $68.60.
"Oil was quieter," Munnelly said.
"Brent steadied near $72 a barrel as improved tanker flows through the Strait of Hormuz and continued US-Iran negotiations eased immediate supply concerns."
Munnelly said crude was helping central banks by reducing headline inflation pressure, but was not signalling a wider growth scare.
"That combination - lower energy without a broader demand collapse - is supportive for risk assets, provided geopolitical risk remains contained," he said.
Most markets reverse earlier losses to close higher
Japan's Nikkei 225 rose 1.47% to 69,744.07, while the broader Topix gained 1.24% to 4,064.60.
ROHM Company surged 14.18%, Sumco Corporation climbed 11.3%, and Kioxia Holdings added 9.23%.
In China, the Shanghai Composite rose 0.37% to 4,043.64, while the Shenzhen Component gained 0.64% to 15,597.51.
Beijing Capital Development rose 10.12%, while Sichuan Furong Technology and TianYu Eco-Environment each gained 10.06%.
The RatingDog China general composite PMI eased to 53.6 in June from a three-month high of 54.0 in May, but remained among the strongest readings in the past three years.
The data pointed to continued expansion across manufacturing and services, with new business rising for a thirteenth consecutive month and employment increasing for a second month in a row.
Input cost inflation slowed to a five-month low, although output charges rose at the fastest pace since March 2022, suggesting stronger pricing power amid resilient demand.
Hong Kong's Hang Seng Index rose 1.28% to 23,350.03.
Zijin Mining Group gained 9.01%, Hansoh Pharmaceutical Group rose 7.6%, and Tingyi added 7.48%.
Kuaishou Technology ended 0.09% lower after earlier rising nearly 7%, following its announcement of a nearly $2.8bn capital injection into artificial intelligence subsidiary Kling AI, backed by Tencent.
Bloomberg reported that the company was targeting a $15bn valuation from the raise.
South Korea's Kospi 100 surged 6.72%.
SK Hynix jumped 10.88%, Samsung Securities gained 10.38%, and NH Investment & Securities rose 8.46%.
Munnelly said semiconductor beta had become the pressure valve for global views on AI capital expenditure, rates and risk appetite.
"When yields rise, the trade cracks; when Fed pricing softens, the same trade rips," he said.
Australia's S&P/ASX 200 advanced 1.37% to 8,844.40.
Genesis Minerals surged 16.7%, Northern Star Resources gained 11.75%, and Capricorn Metals added 10.13%.
Across the Tasman Sea, New Zealand's S&P/NZX 50 rose 0.27% to 13,618.42.
A2 Milk Company gained 2.71%, Fletcher Building rose 2.42%, and EBOS Group added 2.34%.
New Zealand consumer confidence rose in June as two-year inflation expectations eased back closer to January levels before the oil price spike, according to ANZ-Roy Morgan data.
The consumer confidence index increased to 91.3 from 86.5 in May, although it remained 16 points below its January peak.
A reading above 100 indicates optimism, while below 100 signals pessimism.
"Confidence has now regained almost half its fall, with both the current-situation and forward-looking indices now 11 points off their lows," the survey said.
Dollar flat-to-weaker after volatile week
In currencies, the dollar was flat on the yen to trade at JPY 161.07, as it fell 0.26% against the Aussie to AUD 1.4409, and slipped 0.3% on the Kiwi to change hands at NZD 1.7501.
Reporting by Josh White for Sharecast.com.
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