South Korea’s Kospi index surged to a fresh record high for the second consecutive day on Friday, fueled by strong gains in semiconductor and defense stocks. SK Hynix, one of the index’s heavyweight tech players, jumped 6.15%, while defense giant Hanwha Aerospace rose 8.09%, helping the benchmark close 2.31% higher at 5,808.53 points.
Despite the Kospi’s gains, other Asia-Pacific markets struggled as Wall Street’s overnight losses weighed on sentiment. Investors were rattled by a drop in private credit stocks and rising tensions between the U.S. and Iran, with President Donald Trump signaling that a decision on potential military action could come within the next ten days.
The geopolitical concerns also lifted oil prices. U.S. crude rose 0.93% to $67.05 per barrel, while Brent crude gained 0.33% to $71.90, reflecting heightened worries about supply disruptions in the region. Analysts noted that global energy markets are increasingly sensitive to Middle East developments, which continue to influence investor sentiment across Asia.
In Japan, traders digested weaker-than-expected inflation data, with headline inflation for January falling below the Bank of Japan’s 2% target for the first time in 45 months. The Nikkei 225 slid 1.12% to 56,825.7, dragged down by consumer cyclical stocks, while pharmaceutical shares, including Sumitomo Pharma, saw extreme volatility, highlighting the cautious mood among Japanese investors.
Meanwhile, Japan’s new Prime Minister, Sanae Takaichi, outlined plans to counter China’s “coercion” in the East and South China Seas and pledged to boost investments in technology, including AI and semiconductor sectors, without adopting reckless fiscal policies. In Hong Kong, the Hang Seng index fell 0.98% to 26,443.69, and Australia’s S&P/ASX 200 edged lower to 9,081.4, reflecting a broadly cautious regional market outlook.
source: cnbc