Asian stocks saw a positive shift on Friday, bolstered by renewed optimism surrounding China, while gold hovered near record highs, on track for its eighth consecutive weekly gain.
The rise in Asian shares reversed Wall Street’s negative lead from the previous session, driven largely by renewed interest in Chinese technology stocks, particularly in the artificial intelligence (AI) sector.
The MSCI Asia-Pacific index excluding Japan climbed 0.8%, buoyed by strong performances in Hong Kong and China. The Hang Seng Index surged 1.8% at the open, with tech stocks advancing 2.5%. Similarly, the CSI300 index of China’s top blue-chip companies gained 0.2%, and the CSI big data index saw a notable increase of 2%.
Chinese stocks have been gaining traction recently, driven by excitement over AI breakthroughs, such as those from DeepSeek, which have sparked investor interest in China’s tech capabilities. The Hang Seng Tech Index, which has risen 26% so far this year, has outperformed the S&P 500, which has gained just 4% over the same period.
Brian Arcese, portfolio manager at Foord Asset Management, noted that DeepSeek’s AI advancement had helped change investor sentiment toward China, alongside a rare meeting earlier this week between President Xi Jinping and leaders of major Chinese tech companies. Arcese described this move as a significant signal of China’s shift in its approach to technology and market confidence.
Meanwhile, in the commodities market, gold prices remained near their record high, extending their upward trend. Safe-haven flows, driven by uncertainties surrounding US trade policies under President Donald Trump’s leadership and concerns over the ongoing Russia-Ukraine conflict, have supported the yellow metal’s rise.
Gold is poised for its eighth consecutive weekly gain, further supported by concerns over Trump’s tariff threats. The dollar weakened in the face of these concerns, heading for a third consecutive weekly loss, which provided additional support for gold. The dollar’s retreat also saw the British pound reaching a two-month high, and the euro holding steady ahead of upcoming elections in Germany.
In other financial markets, US stock futures were mixed. Nasdaq futures gained slightly, while S&P 500 futures saw minimal changes, as investor sentiment was dampened by a cautious outlook from Walmart. European stocks also showed a mixed performance, with the Euro Stoxx 50 and FTSE 100 both showing slight losses, while France’s CAC 40 saw a modest rise.
On the currency front, Japan’s yen strengthened against the US dollar following data showing core inflation hitting a 19-month high, which has strengthened market expectations for potential interest rate hikes by the Bank of Japan. This news contributed to the Nikkei 225’s modest 0.3% increase.
Meanwhile, oil prices experienced slight dips but were still on track for weekly gains. Brent crude eased by 0.1%, while US West Texas Intermediate crude was down 0.07%, though both were set to rise more than 2% for the week.
With input from Reuters and the Associated Press.
