Asia stocks dip but head for sharp weekly gains on Iran peace hopes, tech boost By Investing.com

Investing.com– Asian stocks edged lower on Friday as investors locked in profits after strong gains earlier in the week, although regional markets remained on track for weekly advances amid hopes for renewed U.S.-Iran peace talks.

Asian equities were supported by strong cues from Wall Street. Both the S&P 500 and the closed at record highs for a second consecutive session on Thursday, driven by easing geopolitical risk.

U.S. stock index futures were little changed in Asian hours.

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US-Iran peace hopes, tech gains provide boost

Investor sentiment had been buoyed by signs of de-escalation in the Middle East. However, the recent rally prompted some profit-taking on Friday.

U.S. President Donald Trump said on Thursday that Israel has agreed to a 10-day ceasefire with Lebanon, easing fears of a broader regional conflict.

He also indicated that Washington and Tehran could resume diplomatic talks over the weekend.

Despite Friday’s dip, Asian markets were still set to post weekly gains.

Japan’s fell 0.8% to 59,037.0 points, but was set to rise 3.5% for the week. The benchmark hit a record high of 59,719 points on Thursday.

Japan’s broader index slipped 1.1% on Friday.

South Korea’s edged down 0.3%, remaining on track for a 6% weekly jump.

Technology-heavy indexes led much of the week’s gains, tracking a strong rally on Wall Street on optimism around artificial intelligence-driven earnings growth.

South Korea’s SK Hynix (KS:000660) shares were set to surge more than 10% for the week, hitting record highs on Wednesday.

Strong earnings from (TW:2330) on Thursday reinforced confidence in the sector. The world’s largest contract chipmaker reported a roughly 58% jump in quarterly profit to a record level, driven by surging global demand for AI processors.

China stocks set for weekly gains after strong Q1 GDP

China’s and Hong Kong’s indices headed for a 1.5% weekly advance, each. Both indices fell modestly on Friday.

Data on Thursday showed China’s economy started the year on a firm footing. The world’s second-largest economy grew 5.0% year-on-year in the first quarter, beating expectations and accelerating from 4.5% in the previous quarter, while quarterly growth came in at 1.3%.

Elsewhere, India’s was on track to rise 0.6% for the week, while Singapore’s Straits Times Index headed for marginal weekly gains.

Australia’s S&P/ASX 200 fell 0.4% on Friday and was set for a 0.5% weekly fall, bucking the regional trend.