Most Gulf stock markets extend
Most Gulf stock markets closed lower on Thursday, extending the previous session’s losses, as renewed hostilities between the United States and Iran weighed on investor sentiment.
Iranian armed forces struck U.S. military infrastructure in neighbouring Gulf states on Thursday after U.S. attacks on Iran’s southern coastal and eastern provinces, increasing pressure on a ceasefire that had been in place for three weeks.
The U.S. military said on Wednesday its latest strikes on Iran were aimed at keeping the Strait of Hormuz open after it said Iranian forces attacked three tankers in the area. The assault came hours after U.S. President Donald Trump said he believed the interim ceasefire with Iran to be “over”.
Australian shares snap four-day decline
Australian shares snapped a four-day losing streak on Friday after an upbeat session on Wall Street, even as a re-escalation in the Middle East conflict raised supply concerns.
The benchmark S&P/ASX 200 index ended 0.5 percent higher at 8,806.00 points.
The benchmark lost 0.4 percent in the week. Wall Street ended sharply higher overnight, helped by Micron Technology’s plans to invest more than $250 billion in the US through 2035.
Meanwhile, Iran initiated attacks on US military infrastructure in Gulf states on Thursday, evoking fears of further supply disruption at the Strait of Hormuz.
South Korean shares rise
South Korean shares rose more than 4 percent on Friday, led by index heavyweight chipmakers, but were still headed for a third straight weekly decline after a volatile week driven by concerns over AI demand.
The benchmark KOSPI was up 336.78 points, or 4.62 percent, at 7,628.69 as of 0152 GMT. It has fallen 6.1 percent so far this week amid heightened volatility in chipmaker stocks on AI worries.
The Nasdaq ended sharply higher on Thursday, as Micron Technology fuelled a rally in chip stocks that eclipsed fears that renewed US and Iranian attacks might prolong the Middle East conflict and fuel inflation.
“It seems appropriate to take the scenario of the stock market re-entering a recovery path as the base case, as AI investment hopes are recovering and the rise in bond yields is being limited,” said Han Ji-young, an analyst at Kiwoom Securities.
Japan’s Nikkei rises 2pc
The Nikkei share gauge rose on Friday, underpinned by a rally in AI-related stocks, while the country’s bond market and currency also advanced on a potential redirection in the investment strategy of Japan’s vast pension funds.
The benchmark Nikkei 225 was up 2 percent at 69,121.02, while the broader Topix rose 0.76 percent to 4,050.82. The yield on Japan’s 10-year government bond fell 10 basis points (bps) to 2.775 percent, retreating from a three-decade high.
The yen strengthened 0.43 percent against the greenback to 161.69.
Tech shares on Wall Street soared after chipmaker Micron Technology laid out plans to invest more than $250 billion in the United States through 2035.
Hong Kong stocks set for strongest week
Hong Kong stocks rose on Friday, headed for their best weekly performance in over a year, as sentiment toward Chinese internet companies brightened, while mainland Chinese shares also headed for weekly gains fuelled by a rally in chip stocks.
China’s blue-chip CSI300 Index rose 0.5 percent by the lunch break, while the Shanghai Composite Index gained 0.8 percent. Hong Kong benchmark Hang Seng was up 1.9 percent.
The Hang Seng Index has advanced nearly 5 percent so far this week, set to log its biggest weekly gain since March 2025.
The CSI300 was on track to end the week 1.2 percent higher.
Indian shares set to open higher
Indian shares were set to open higher on Friday, likely led by IT stocks after Tata Consultancy Services reported quarterly revenue above estimates, while easing oil prices and firmer Asian markets were also expected to support sentiment.
GIFT Nifty futures were trading at 24,117.5 as of 8:03 a.m. IST, indicating the Nifty 50 could open above Thursday’s close of 23,962.80.
IT stocks will be in focus after Tata Consultancy Services, India’s top software services exporter, beat June-quarter revenue expectations, helped by stronger spending from banking clients and a weaker rupee.
South Korean stocks settle higher
South Korean stocks settled higher on Thursday following a volatile session that dragged them to seven-week lows, while Malaysia’s currency and equities held steady after the central bank kept its interest rate unchanged as widely expected.
The tech-heavy South Korean benchmark KOSPI ended 0.5 percent higher on a chip-stock rebound after swinging between gains and losses. Its previous session’s fall, amid a tech share slide, marked a 20 percent decline from a record close on June 22 that confirmed a bear market.
Despite this, the South Korean index is still the top global market with a nearly 73 percent gain this year on a blistering rally in AI-linked stocks.
Sri Lankan stocks extend
Sri Lankan shares closed lower for the eighth straight session on Thursday, its longest downward streak since September 2024, dragged by losses across sectors.
The CSE All-Share index settled down 0.60 percent at 21,697.72.
Industrial Asphalts (Ceylon) PLC and Agstar PLC were the top percentage losers on the CSE All-Share index, falling 12.5 percent and 8 percent, respectively.
Trading volume on the index fell to 119.5 million shares from 210.2 million in the previous session.
The equity market’s turnover dropped to 1.44 billion Sri Lankan rupees ($4.3 million) from 2.26 billion rupees in the previous session, according to exchange data.