Trade Optimism and Tech Gains Drive Asia Stocks Higher

Asian equities posted broad gains on Friday, led by a strong rally in technology shares, after news broke that U.S. President Donald Trump is scheduled to meet with Chinese President Xi Jinping next week. The confirmation of dialogue between the world’s two largest economies helped ease investor concerns over recent U.S.-China trade frictions, which had involved threats of higher tariffs and export curbs on rare earth materials.

Regional markets mirrored a positive close on Wall Street, where robust corporate earnings, notably from chip giant Intel Corporation (NASDAQ:INTC), boosted overall risk appetite. U.S. stock futures also ticked higher in Asian trading, pointing to continued momentum.

Tech Rallies on Geopolitical Thaw

The biggest beneficiary of the de-escalation hopes was South Korea’s KOSPI, which soared over 2% to hit a fresh record high of 3,924.83 points. This surge was powered by its dominant chipmaking heavyweights, with SK Hynix shares jumping more than 6% and Samsung Electronics rising 2%.

Chinese markets also advanced following the Communist Party’s unveiling of a new five-year economic plan. The framework emphasized advanced manufacturing, technological self-reliance, and a push for stronger domestic demand, reinforcing optimism that Beijing is committed to growth through structural reform and innovation. China’s blue-chip Shanghai Shenzhen CSI 300 gained 0.5%, while the Shanghai Composite index rose 0.3%. Hong Kong’s Hang Seng index climbed 0.6%, with the Hang Seng TECH sub-index outperforming with a 1.5% jump.

Mixed Economic Signals in Japan

Economic data in Japan presented a mixed picture for policymakers. Core consumer prices rose 2.9% in September, remaining above the Bank of Japan’s (BOJ) 2% target and fueling speculation about an eventual policy tightening. However, this was tempered by news that Japan’s factory activity for October slipped to its weakest level in 19 months, signaling continued contraction in manufacturing output, though the services sector remains robust due to strong domestic demand.

Despite the mixed data, the Nikkei 225 index jumped 1.3%, supported by the new government led by Prime Minister Sanae Takaichi. Her administration, with a dovish policy stance, is reportedly preparing a large stimulus package aimed at inflation relief and high-tech investment.

Attention Shifts to US Inflation

Elsewhere in the region, Australia’s S&P/ASX 200 was largely steady, and Singapore’s Straits Times Index rose 0.3%. Investors’ immediate focus now pivots to the crucial U.S. Consumer Price Index (CPI) data due later Friday. The inflation figures will be key in shaping expectations for the Federal Reserve’s monetary policy path ahead of next week’s central bank rate decision, potentially setting the tone for global markets into the final months of the year.