Asian markets posted strong gains on Friday, tracking Wall Street higher after South Korea’s stock exchange staged a record rebound, fuelling expectations that the recent sell-off in artificial intelligence-linked equities may have run its course. The Japanese yen also attracted attention, holding well clear of a 40-year low following an alleged coordinated intervention by authorities in the previous session, even as the Bank of Japan (BOJ) left interest rates unchanged on Friday.
Asian equities recovered on Friday, driven by better-than-expected results from Microsoft and Amazon, as markets continued to assess the outlook for monetary policy in both the United States and Japan.
South Korea’s KOSPI index advanced 17%, recovering from steep losses recorded earlier in the week. Japan’s Nikkei rose nearly 4%, while the MSCI’s broadest index of Asia-Pacific shares outside Japan gained 6%.
The rebound was underpinned by strong gains in Microsoft and Amazon on Wall Street, which lifted chipmaker stocks after the two technology giants’ results and guidance eased concerns over elevated capital expenditure levels.
“Both results and sentiment are recovering somewhat after the really exaggerated move seen at the start of the week,” said Fabien Yip, market analyst at IG.
Despite the recovery, the KOSPI remains on course for a decline of more than 22% in July, which would represent its largest monthly loss since 2008. The sharp volatility prompted South Korean authorities to restrict certain leveraged products following significant losses sustained by retail investors.
“Our view is that the correction reflects a recalibration of expectations after an exceptional run-up, rather than a significant weakening of investment fundamentals,” said Jacky Tang, head of emerging market investments at Deutsche Bank’s Private Bank.
In futures markets, Nasdaq contracts were up more than 1%, while S&P 500 futures advanced 0.46%. In Europe, EURO STOXX 50 futures gained 0.8%, while FTSE and DAX futures rose 0.47% and 0.6%, respectively. In China, the CSI AI index and Shanghai’s STAR Composite climbed more than 5%.
In currency markets, the yen weakened around 0.7% to 160.66 per dollar after the BOJ held interest rates steady. Attention now turns to a press conference by Governor Kazuo Ueda, which investors are watching closely for signals on the next steps in monetary policy.
“The upward revision to growth, combined with the acknowledgement of upside inflation risks and the first-ever recognition that underlying inflation could exceed the target, makes this hold a hawkish one,” said Junyu Tan, North Asia economist at Coface.
The Japanese currency remains under pressure, despite the alleged authorities’ intervention in the previous session, due to the persistent interest rate differential between Japan and the United States.
Meanwhile, yields on long-dated US Treasury bonds held near 19-year highs, while short-term yields retreated, steepening the yield curve at a time when doubts are growing over the Federal Reserve’s ability to keep inflation expectations anchored.
Source: Diário Económico
Original article: https://www.diarioeconomico.co.mz/2026/07/31/mercados/mercados-mercados/accoes-disparam-enquanto-o-iene-aguarda-conferencia-do-banco-do-japao-apos-impulso-de-intervencao/
