Asian Stocks Rise Amid Technology Recovery

Asian stocks rose on Friday as technology stocks recovered from Nvidia-induced losses, while month-end bargain buying saw Chinese shares rebound from more than six-month lows.

However, most regional markets were still headed for a loss in August, struggling to recover from significant early-month losses.

Asian markets took positive cues from Wall Street, where the Dow Jones Industrial Average rose to a record high driven by buying in economically sensitive stocks. Meanwhile, Nvidia Corporation (NASDAQ: NVDA), after a middling outlook, pulled down the S&P 500 and NASDAQ Composite, but these losses appeared to be easing, along with a broader tech sector rout. Nvidia rose in aftermarket trade, as did U.S. stock index futures.

A focus was placed on the upcoming PCE price index data from the U.S., scheduled for release on Friday. This data is the Federal Reserve’s preferred inflation gauge and will likely impact expectations for interest rate adjustments.

Optimism over potential lower rates helped Asian markets mitigate some August losses, with traders increasingly confident that the Fed will announce cuts in September.

Chinese Stocks Rebound

China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose 1% and 0.5%, respectively, performing better amid month-end bargain buying, even though they were set to lose between 3% and 4% this month. Chinese markets faced persistent capital outflows throughout August, marking them as the worst performers in Asia.

In contrast, Hong Kong stocks significantly outperformed other Asian markets, with the Hang Seng index rising 1.1% on Friday and maintaining a 2.6% gain in August. Strong earnings from technology heavyweights spurred a wave of bargain buying in the sector, with analysts highlighting attractive valuations among major Chinese internet stocks.

Japan and South Korea Face Losses

Japan’s Nikkei 225 and TOPIX indexes rose about 0.7% and 0.6%, respectively. Despite inflation data from Tokyo indicating higher-than-expected figures for August, signaling strengthening private spending, industrial production and retail sales data for July missed forecasts.

While Japanese stocks recovered a significant portion of their early-August losses that led to a bear market, both indexes are still projected to lose over 1% in August.

South Korea’s KOSPI rose 0.6% on Friday, boosted by a recovery in technology stocks. However, an extended sell-off through August indicates a likely 3.3% decline for the month.

Australia’s ASX 200 increased by 0.4%, anticipating only minor losses in August due to inflows into economically sensitive sectors like banks and miners.

Futures for India’s Nifty 50 index suggested a positive start, with the index and BSE Sensex 30 reaching record highs on Thursday. They were also trading up 0.8% and 0.4% for August, fueled by optimism regarding India’s economic prospects, which supported buying in local markets.