Asia Stocks Mixed as TSMC Earnings Boost Tech Sector

Summary of Market Movements

Asian stock markets showed a mixed performance on Friday, with a significant rally in technology shares driven by strong earnings from chipmaker TSMC. However, losses in other sectors capped broader market gains, creating a divergent regional picture.

Wall Street provided a mildly positive lead, breaking a two-day losing streak, with market focus now shifting towards upcoming U.S. corporate earnings.

Tech Sector Rallies on TSMC's Strong Outlook

Technology-heavy indexes saw notable gains. South Korea’s KOSPI index rose over 1%, led by chipmakers Samsung Electronics and SK Hynix. The rally followed Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, reporting fourth-quarter earnings that surpassed expectations.

TSMC's results, fueled by robust demand for artificial intelligence technology, pushed its shares to a record high and sparked a rally across the global tech sector. The company is considered a key bellwether for chip industry demand.

Broader Market Performance and China's Outlook

While tech advanced, other major indexes like Japan's Nikkei 225 and Hong Kong's Hang Seng were subdued due to profit-taking and losses in non-tech sectors. Chinese markets, including the CSI 300 and Shanghai Composite, were flat as investors awaited key economic data.

Australia's ASX 200 advanced, with bank stocks tracking gains from their U.S. counterparts. The focus for the region remains squarely on the upcoming release of China’s fourth-quarter GDP figures.

Market Outlook

Investors are closely monitoring China's GDP data, which is expected to provide crucial insights into the health of the region's largest economy and its ability to meet the government's 5% annual growth target. This, along with U.S. earnings, will likely set the market tone.

FAQ

Q: Why did Asian tech stocks rise?

A: Tech stocks rose mainly because chipmaking giant TSMC reported stronger-than-expected Q4 earnings and signaled continued strong demand fueled by artificial intelligence.

Q: What key economic data is the market watching?

A: Markets are awaiting China's fourth-quarter Gross Domestic Product (GDP) data to gauge economic performance and see if the country met its annual growth target.

Source: Investing.com