Asian stock markets presented a mixed picture on Friday. Investors reacted to corporate earnings and shifting geopolitical winds. The trading session saw some markets climb while others dipped into negative territory.
Taiwan Leads Regional Gains
Taiwan's stock market stood out with a strong performance. The benchmark index surged by 2.11%, adding 649 points to reach 31,459. This rally was fueled by positive news from a key local company and international trade developments.
TSMC Earnings Boost Confidence
Taiwan Semiconductor Manufacturing Company reported impressive quarterly results. The chipmaker's net profit for the fourth quarter surpassed market expectations. This strong performance signaled robust ongoing demand for technologies powered by artificial intelligence.
TSMC shares jumped 4.4% in US trading. They gained another 2.4% in Taipei. The company's success provided a significant lift to AI-linked stocks across the region. It helped counter fears about a potential sharp correction in the high-flying AI sector.
US-Taiwan Trade Agreement
Further supporting Taiwan's market was a new trade announcement. The United States revealed it had concluded a trade agreement with Taiwan. This pact will lower tariffs on Taiwanese goods entering the US market.
Taiwan holds a critical position in global technology supply chains. The island is a major producer of semiconductor chips. These components power everything from smartphones to advanced computing systems.
Other Asian Markets Show Varied Performance
South Korea's Kospi index also traded in positive territory. It gained 30 points, representing a rise of 0.64%. However, not all markets shared this upward momentum.
Mainland Chinese markets experienced slight declines. The Shanghai composite index dipped by 0.22 points. The Shenzhen index fell by 0.1 points. Hong Kong's Hang Seng Index dropped 0.27%, losing 70 points to reach 26,851 by 10:20 am Indian Standard Time.
Geopolitical Developments Influence Sentiment
Easing US-Iran Tensions
Broader market sentiment received support from developments in the Middle East. Tensions between the United States and Iran appeared to ease. This shift helped stabilize commodity prices and reduced investor anxiety.
The United States stated on Thursday that Iran had halted 800 executions of protesters. This move followed pressure from US President Donald Trump. Gulf allies reportedly discouraged immediate military action in response to Tehran's crackdown on demonstrations.
However, the White House maintained a firm stance. Officials confirmed that "all options remain on the table for the president." The administration also imposed fresh sanctions against Iranian officials.
Commodity Market Stability
Oil prices remained largely unchanged during the trading session. The calmer geopolitical backdrop prevented significant price movements. Precious metals also found some stability after recent volatility.
Silver prices recovered most of their losses. The metal had plunged 7% earlier in the week before regaining ground.
Global Context and Investor Mood
The mixed Asian performance followed a rebound in US equities. American stocks had recovered after two consecutive sessions of losses. This recovery provided some support to regional markets.
Investor sentiment in Asia remained cautious overall. While TSMC's strong earnings boosted technology stocks, broader concerns persisted. Some market participants worry that the rapid rise in AI-related stocks could eventually unwind sharply.
TSMC's latest results helped alleviate these fears temporarily. The company's performance demonstrated continued strong demand for AI-driven technologies. This demand appears resilient despite broader economic uncertainties.
The trading day highlighted how corporate earnings and geopolitical developments interact to shape market movements. Technology stocks benefited from specific company news. Meanwhile, reduced tensions in the Middle East provided general support to risk assets.
