Key Takeaways

• Regional retreat: Asian markets fell broadly Friday, with Wall Street’s overnight slide setting a weak tone after U.S. forces intercepted attacks on three warships in Hormuz.
• Tech holds firm: S&P 500 futures rose 0.2% in Asian trade as AI optimism continued to support technology stocks.
• KOSPI stars despite Friday drop: South Korea’s index fell 1.6% but is still set for an 11%+ weekly gain — the best in Asia.
• Korean chip giants lead: Samsung fell 3% and SK Hynix slid 1.5% Friday after a record-setting week, supported by AI demand.
• SK Hynix bombshell: Reuters reports the firm is courting “unprecedented” offers from tech giants seeking memory chip supplies.
• Nikkei extends weekly gain: Japan’s index fell over 1% Friday but is set for a 4% weekly rise after Golden Week return.
• Wage data fuels BOJ bets: Japanese real wages rose for the third straight month in March, reinforcing rate hike expectations.
• China steady: CSI 300 fell 0.5% and Shanghai Composite slipped 0.2% Friday, but both are up over 1% this week.
• Hang Seng strong week: The Hong Kong index lost 1.2% Friday but gained nearly 2% over the week on tech.
• ASX 200 flat: Australia’s index dropped 1.5% after the RBA’s 25 bps hike and inflation warnings.
• Oil surge spooks markets: Crude prices jumped on the renewed Hormuz tensions, raising inflation fears.

Asian stocks fell on Friday, with Japanese and South Korean markets coming off record highs as renewed military action between the United States and Iran dampened hopes for an end to the war.

Regional markets drew a weak lead-in from Wall Street, which slipped from record highs overnight after the U.S. military said it had intercepted attacks on three warships in the Strait of Hormuz.

However, overall losses were contained, with S&P 500 futures up 0.2% in Asian trade as technology shares remained resilient on continued optimism over artificial intelligence.

South Korea’s KOSPI Falls from Record Highs — But Set for Bumper Week

South Korea’s KOSPI was among the worst performers of the day, falling 1.6% and pulling further away from the record highs hit earlier in the week.

Even so, the index has been by far the best-performing Asian bourse this week, on track to add more than 11%.

The strength was driven primarily by local chipmaking stocks, with memory chip giants Samsung Electronics Co Ltd and SK Hynix Inc logging powerful gains amid mounting optimism over the AI industry.

Samsung fell 3% on Friday, while SK Hynix shed 1.5% after a stellar week of record highs. Losses in SK Hynix were cushioned after Reuters reported that the company was fielding “unprecedented” offers from major technology companies looking to secure memory chip supplies.

Asian Stocks Slide as Iran Tensions Surge — But Weekly Gains on Tap

Broader Asian stocks retreated on Friday, dented by the escalation in U.S.-Iran military action in the Strait of Hormuz. The flare-up largely undermined earlier hopes that a lasting peace deal between the two adversaries was within reach.

Oil prices also surged on Friday, further spooking markets with the renewed inflationary specter of the Iran war.

Japan’s Nikkei 225 and TOPIX indexes each fell over 1%. Strong Japanese wage data — which showed real wages increasing for a third consecutive month in March — also fueled bets that an interest rate hike by the Bank of Japan was drawing closer.

The Nikkei is still set to add about 4% this week, having returned from the Golden Week holiday on a strong note.

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes fell 0.5% and 0.2%, respectively, but were both up over 1% on the week. Hong Kong’s Hang Seng index slid 1.2% but was up nearly 2% this week on tech-led gains.

Australia’s ASX 200 dropped 1.5% and was flat for the week, after the Reserve Bank of Australia raised interest rates by 25 basis points and warned of higher inflation that could choke growth.

Singapore’s Straits Times index slid 0.9%, while futures for India’s Nifty 50 were flat.