Asia-Pacific Equities Rise on Tech Strength as Investors Track Iran War and U.S. Jobs Data

Tech Stocks Lift Japan and South Korea

Japanese and South Korean equities rose on Friday in a low-volume session, supported by strength in technology shares. Japan's Nikkei 225 index gained 1.31% to close at 53,147.96. South Korea's KOSPI index advanced 2.99% to finish at 5,390.39.

Technology stocks were a key driver of the regional gains. In Japan, Sakura Internet jumped 20% after Microsoft announced plans to invest $10 billion in Japan for artificial intelligence and data center expansion. The announcement contributed to positive sentiment toward technology-related names in the Japanese market.

The moves took place as broader Asia-Pacific markets mostly advanced, supported by hopes for a potential reopening of the Strait of Hormuz, which has been closed by Iran, disrupting global oil supplies.

Chinese Markets Fall as Oil and Dollar Hold Firm

In contrast to Japan and South Korea, Chinese equity markets declined. The Shanghai Composite index fell 0.81%, while Hong Kong's Hang Seng index slipped 0.70%. These declines came despite gains elsewhere in the region and ongoing focus on geopolitical and macroeconomic risks.

Market participants continued to monitor the Iran war and its effect on global trade and commodity flows. The closure of the Strait of Hormuz by Iran has disrupted global oil supplies, contributing to elevated energy prices. West Texas Intermediate (WTI) crude traded at $112.06 per barrel.

In currency markets, the U.S. dollar index stood at 100.033. Investors were also awaiting the U.S. March jobs report, which is expected to show the impact of the Iran war on the labor market. The data are being watched as a key indicator of how geopolitical tensions are feeding through to economic conditions.

FAQ

Which Asian equity markets gained on Friday?
Japan's Nikkei 225 rose 1.31% to 53,147.96, and South Korea's KOSPI gained 2.99% to 5,390.39.

What drove the rally in Japanese technology stocks?
Sakura Internet surged 20% after Microsoft announced plans to invest $10 billion in Japan for AI and data center expansion, supporting broader strength in technology shares.

How did Chinese markets perform?
The Shanghai Composite fell 0.81%, and the Hang Seng declined 0.70%, lagging the gains seen in Japan and South Korea.

What key macro factors were investors watching?
Investors were monitoring the Iran war, the closure of the Strait of Hormuz and its impact on global oil supplies, elevated oil prices with WTI at $112.06 per barrel, the U.S. dollar index at 100.033, and the forthcoming U.S. March jobs report.