Asian stocks rally on Wall Street chip surge, easing oil

South Korea's KOSPI surged on Friday, leading Asian gains after Micron pledged over $250 billion in U.S. AI investment and SK Hynix ADR demand soared.chosun
India's Sensex jumped over 800 points as IT stocks rallied, while Japan's Nikkei 225 and Hong Kong's Hang Seng also climbed.moneycontrol+1
Oil prices edged lower Friday but remained on track for strong weekly gains as traders bet U.S.-Iran hostilities would not escalate further, according to Reuters.timesofindia.indiatimes

Asian stock markets advanced broadly on Friday as an overnight Wall Street rally in semiconductor shares and easing oil prices lifted sentiment across the region. South Korea's Kospi led gains, opening up 3.57% before extending its advance through the session, while India's Sensex jumped over 800 points on strength in IT stocks.moneycontrol+2

Chip Rally Fuels Region-Wide Gains

The rally was powered by a surge in chip-related shares on Wall Street Thursday, where Micron announced plans to invest over $250 billion in the United States by 2035 to meet expanding AI demand, sending its shares up 4.5%. SK Hynix also drew attention after orders for its U.S. American Depositary Receipt offering exceeded seven times the available shares, according to the Chosun Ilbo. The Nasdaq Composite gained 1.30% and the S&P 500 rose 0.81% on Thursday.chosun

Across Asia on Friday, Japan's Nikkei 225 rose 1.84%, Hong Kong's Hang Seng added 1.73%, and the Shanghai Composite gained 0.76%. In India, the Nifty 50 crossed the 24,200 level as IT stocks including Infosys , TCS Tata Consultancy Services Limited, and HCL Tech rallied on the back of strong sector sentiment from Wall Street's tech-led session.rediff+2

Oil Eases as Traders Bet on Diplomacy

Oil prices edged lower on Friday even as they headed for strong weekly gains. Brent crude slipped to around $76.24 a barrel, while WTI dipped to $72.04, according to Reuters. Despite the modest decline, Brent was set to post a 6% weekly gain and WTI a 5% rise for the week, reflecting the volatility driven by renewed U.S.-Iran hostilities.timesofindia.indiatimes

Markets took some comfort from signals that diplomacy had not entirely collapsed. President Donald Trump said Wednesday evening that Iran "badly" wants to make a deal, CNBC reported, even as U.S. Central Command carried out a second round of strikes on Iranian military targets. Citigroup analysts told clients that the U.S. and Iran are likely to return to negotiations in the coming weeks. The two sides signed a Pakistan-brokered memorandum of understanding on June 16 that established a 60-day peace talks process, though the latest escalation has tested its durability.cnbc+2

Outlook Remains Tied to Geopolitics

The Associated Press reported that Asian stocks climbed broadly as traders continued to monitor developments in the Iran conflict, with oil prices slipping on hopes that the fighting would not escalate into a full closure of the Strait of Hormuz. Andy Lipow, president of Lipow Oil Associates, told CNBC that the oil market is not pricing in a complete shutdown of the waterway. With hostilities still ongoing but markets betting on a return to talks, the week ahead will likely hinge on whether Washington and Tehran can restore the fragile truce.washingtonpost+2

Sources (30)