Asian stocks rise as US inflation, tech spur gains; Kospi up 1%

Asian stocks climbed on Friday, buoyed by a decline in US inflation and strong performance from technology companies. MSCI's Asia Pacific equities index increased by 0.5 percent, marking its weekly rise at 2.7 percent. South Korea's Kospi Index, a key indicator for the artificial intelligence sector, spearheaded the regional gains, as Samsung Electronics and SK Hynix reported significant weekly gains.

The S&P 500 futures remained unchanged at 11:47 am Tokyo time. Japan's Tokyo Stock Exchange (Topix) climbed by 0.7 percent, while Australia's S&P/ASX 200 declined by 0.8 percent, Hong Kong's Hang Seng fell by 0.7 percent, and China's Shanghai Composite Index slipped by 0.2 percent. The positive sentiment in Asian markets was driven by renewed confidence in the artificial intelligence trade after recent setbacks in semiconductor stocks.

Yugo Tsuboi, chief strategist at Daiwa Securities, noted that the easing of uncertainty over US monetary policy has spurred tech sector recovery, as the probability of a Federal Reserve rate increase in September decreased. The yield on the two-year US Treasury note remained steady at 4.15 percent, signaling less concern about potential Fed rate hikes.

While China's 10-year bond yield dropped to its lowest level since July, US wholesale inflation cooled more than anticipated in July, suggesting a softer-than-expected inflation environment.