Asian stocks gained on Friday, buoyed by a Wall Street rally and growing speculation that U.S. interest rate cuts may arrive by year-end. Yet, optimism was held in check as the U.S. government shutdown disrupted access to critical economic data.
The Nikkei 225 in Tokyo rose 1.7%, with investors pouring into semiconductor and robotics companies. The gains underscored Japan’s growing reputation as a safe haven in Asia amid uncertainty elsewhere in the region.
In South Korea, the Kospi edged higher, supported by strong performances from Samsung Electronics and SK Hynix. Taiwan’s Taiex followed a similar pattern, climbing on the back of chip and AI server manufacturers’ global demand.
Australia’s ASX 200 advanced modestly as resource-linked companies benefitted from firmer iron ore and copper prices. Banks also provided steady support, reflecting confidence in domestic stability.
The Hang Seng Index in Hong Kong, however, slipped, highlighting persistent investor unease with China’s fragile property sector. Debt concerns and lackluster policy measures weighed heavily on developer shares, dragging the index lower despite broader regional gains.
The optimism across Asia came after Wall Street’s strong finish, with the Nasdaq Composite notching another record high. Traders are increasingly betting on a Federal Reserve rate cut in December, which has spurred renewed appetite for risk assets, particularly technology.
Still, the U.S. government shutdown looms as a major uncertainty. The suspension of the September jobs report deprived investors of a crucial economic barometer for Fed policy. Analysts fear that a prolonged shutdown could distort markets by leaving traders without key signals.
“Rate cut hopes are fueling this rally,” said an economist in Singapore. “But without reliable data, investors are essentially flying blind, and that raises the risk of mispricing.”
