Precise Investors Editorial Team
KOSPI closed 18% higher on Friday after suffering steep losses for three straight sessions
Asian stock markets rose on Friday, led by a sharp rebound in South Korean shares, while investors digested the Bank of Japan’s decision to leave interest rates unchanged and a new batch of economic data.
The Bank of Japan kept interest rates unchanged on Friday, maintaining its short-term policy rate at 1.0% as policymakers judged the economy remained on a moderate growth path despite headwinds from higher oil prices and geopolitical tensions in the Middle East.
The central bank voted 8-1 to keep the uncollateralized overnight call rate at around 1.0%, with board member Hajime Takata dissenting in favour of raising the rate to 1.25%, citing growing upside risks to inflation from overseas demand shocks and changing international financial conditions.
The bank said risks to inflation remain skewed to the upside and warned policymakers must pay close attention to the impact of Middle East developments, foreign exchange moves and international AI demand on Japan’s economy and prices.
Nikkei 225 jumped almost 4%, supported by gains in semiconductor-related stocks.
The BOJ’s decision came after data released earlier on Friday showed inflation in Japan’s capital accelerated more than expected.
Separately, data showed Japan’s industrial production rose 1.3% in June from the previous month, beating expectations for a 1% rise.
Retail sales rose 0.5% year-on-year in June.
KOSPI closed 18% higher on Friday after suffering steep losses for three straight sessions.
Heavyweight chipmakers Samsung Electronics and SK Hynix rebounded strongly.
The tech bounce back helped stabilize sentiment after a week dominated by concerns over AI valuations and rising competition from Chinese chipmakers.
Despite Friday’s gains, the KOSPI remained on track for a 22% monthly decline amid profit-taking and AI-related worries.
Chinese shares were also higher, with the Shanghai Composite index gaining 1%, and the blue-chip Shanghai Shenzhen CSI 300 advancing 1.3%. Hang Seng edged 0.2% lower, although the Hang Seng TECH sub-index was higher.
Data on Friday showed that China’s manufacturing activity unexpectedly slid back into contraction in July, while the non-manufacturing PMI also weakened, highlighting persistent headwinds facing the world’s second-largest economy.
Investors continued to watch for signs of additional policy support from Beijing.
S&P/ASX 200 edged 0.1% higher, while Straits Times index dropped 0.8%.
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