Asia report: Stocks rally off lows as investors snap up battered tech names

(Sharecast News) - Asian equities ended the week with a mixed performance, although most major markets recovered strongly from early selling pressure as investors stepped back into technology stocks following a volatile run for the sector.

Improved risk appetite later in the session helped offset concerns surrounding AI valuations, higher energy prices and global growth.

South Korea was among the strongest performers in the region. The Kospi rose 0.3% to 5,550, staging an impressive recovery from steep intraday losses as investors snapped up semiconductor shares and broader technology stocks.

Hong Kong led regional gains, with the Hang Seng Index rising 0.7% to 23,093, while the Hang Seng Tech Index surged 2.0% as investors returned to large-cap technology names. The advance helped the market recover much of the weakness seen earlier in the week and provided a boost to broader sentiment across Asia.

Mainland Chinese markets also posted solid gains. The Shanghai Composite climbed 0.89% to 3,690, supported by renewed buying in financial and industrial stocks, while expectations for further policy support continued to underpin confidence.

China's broader equity benchmarks outperformed. The Shenzhen Component Index jumped 2.79% to 11,673 and the growth-focused ChiNext Index rallied 4.16% to 2,684, reflecting a sharp rebound in technology and innovation shares after recent heavy selling.

Japanese equities remained under pressure despite a late-session recovery. The Nikkei 225 fell 0.25% to 62,754.16, while the broader Topix Index declined 0.79% to 3,965 as investors continued to favour defensive positions amid uncertainty over the outlook for global technology earnings.

Elsewhere in the region, Australia's S&P/ASX 200 finished modestly higher, while gains were also recorded in Singapore and Jakarta.

Technology stocks remained the key driver of regional trading. Investors continue to reassess whether vast spending on artificial intelligence infrastructure can generate sufficient long-term returns, although Friday's bounce suggested bargain hunters are beginning to re-enter the sector.

Oil prices remained elevated, however, retaining pressure on the inflation outlook. Brent crude traded above $114 a barrel while US crude remained above $100, leaving investors alert to the potential impact of sustained energy costs on regional economic growth.

Reporting by Frank Prenesti for Sharecast.com