Asia mixed at the close: Tokyo advances, Seoul slips on Tech profit-taking

Asian stock markets ended the week on a mixed note, with investors torn between optimism over macroeconomic resilience and caution toward the technology sector after the strong rally of recent months.

In Tokyo, the Nikkei 225 closed higher, consolidating multi-year highs supported by yen weakness and expectations of still-accommodative policies. The Japanese market is also benefiting from the strength of major exporters and renewed foreign interest in domestic equities.

A more subdued performance was seen in China: the Shanghai Composite ended slightly above flat, amid expectations of further stimulus measures to support growth, while in Hong Kong the Hang Seng posted a modest gain, helped by a selective rebound in technology shares following recent corrections.

Seoul underperformed, with the KOSPI finishing marginally lower, weighed down by profit-taking in electronics and semiconductor heavyweights. In the spotlight remains Samsung Electronics, which has drawn strong attention in recent weeks thanks to artificial intelligence prospects and the strengthening chip cycle. However, after recent gains, part of the market opted to trim positions amid valuations perceived as stretched.

On the geopolitical front, tensions in the Middle East and uncertainty over trade negotiations between the United States and China continue to shape global sentiment, contributing to volatility across Asian markets. Investors are also monitoring upcoming macroeconomic data from Washington and Europe, which could influence the next moves by central banks.

Overall, the picture remains one of cautious confidence: the AI narrative and the recovery in the technology cycle continue to support equities, yet sensitivity to geopolitical developments and macro signals keeps investors on alert.

Andrea Pelucchi