Asian technology stocks regain favour
Following the sharp sell-off in semiconductor stocks earlier this week, the sector has returned to investors' favour. In Asia, industry heavyweights such as Samsung Electronics and SK Hynix posted gains, helping technology-driven equity markets in Japan and South Korea finish the week on a positive note.
China is also showing signs of a shift in market leadership. While Chinese equities had attracted relatively little investor interest in recent weeks, buying activity has begun to return, particularly in the technology sector. Compared with their counterparts in Japan and South Korea, many Chinese technology companies continue to trade at a meaningful valuation discount, making the sector increasingly attractive to value-oriented investors.
Iran escalation keeps investors cautious
These positive developments are being overshadowed by the renewed escalation of the conflict involving Iran. As previously threatened, Iran has begun targeting military bases in neighbouring countries, raising the prospect of another tense weekend for global financial markets.
Although the US has indicated that its military operations are expected to last only days or weeks, the duration of the conflict will ultimately depend on Iran's response and broader developments across the Middle East. According to diplomatic reports, technical discussions between the parties are continuing despite the military escalation, which has so far prevented investors from moving into full risk-off mode.
