Mixed Asian Trading as South Korea Rebounds, Chip Stocks Stabilize

Asian markets traded mixed on Friday morning as investors hoped a rebound in technology shares would steady sentiment after a sharp Wall Street selloff that dragged the region lower. Japan’s Nikkei fell 1%, Australia’s S&P/ASX 200 rose 0.3%, Hong Kong’s Hang Seng added 0.6%, and China’s CSI 300 was little changed. South Korea stood out, with the Kospi jumping more than 3% after plunging 10% in the prior session.

The recovery was led by semiconductor giants Samsung Electronics and SK Hynix, which rose sharply after each lost more than 12% the day before. Their heavy weight in the Kospi, about 40%, helped drive the index’s strong rebound. In the US, Nasdaq futures were up 0.3%, while investors waited for Micron’s earnings report later in the day, seen as a key test for the chip sector. Micron has benefited from relentless demand for memory chips tied to AI infrastructure and high-bandwidth memory, and analysts expect revenue to surge about 276% to $34 billion to $35 billion, with EPS of $19 to $21, nearly 1,000% above a year earlier.

Markets were still digesting Thursday’s sharp selloff in New York, where the Nasdaq fell 2% and the S&P 500 dropped 1.3%, while the Dow Jones held near flat. Despite the slide in tech, 57% of S&P 500 stocks rose. Analysts said the drop was not surprising after huge gains in April and May, and some blamed heavy retail participation and leveraged buying in technology and chip shares. Chip ETFs were hit hardest, with DRAM funds falling 14% and the SOXX ETF losing 8%.

US Treasury yields also eased as falling stocks and oil prices reduced pressure on the Federal Reserve to tighten policy further. The 2-year yield fell about 3 basis points to roughly 4.20%. Attention now turns to US personal spending data due Friday. In currency markets, the dollar index steadied, gold fell for a second day, and the dollar held at 2.99 shekels, up about 7% since the start of the month. The yen remained under heavy pressure near 161.9 per dollar, with traders watching for possible intervention from Tokyo if the exchange rate breaks above 162. Brent crude slipped below $77 a barrel after tanker traffic in the Strait of Hormuz increased following a temporary US-Iran peace agreement.