Asian Stocks Climb on Fed Optimism Despite Tech Sector Worries

Asian stocks climbed on Friday, mirroring Wall Street’s record-setting performance after the U.S. Federal Reserve delivered another interest rate cut. The upbeat mood held firm even as fresh worries emerged over lofty tech valuations following weaker-than-expected earnings from Oracle and Broadcom.

Despite a choppy trading week, markets finished strongly, with attention now shifting to next week’s delayed U.S. non-farm payrolls report — a release expected to offer clearer clues about the Fed’s policy path for 2026. New data on Thursday showed jobless claims rising more sharply than anticipated to their highest level in five and a half years, reinforcing signs that the labour market is cooling.

Investors were encouraged by Fed Chair Jerome Powell’s post-meeting tone, which came across as less hawkish than many feared. Still, the central bank’s statement hinted it may pause rate cuts in January, and an unusual three-member dissent added uncertainty to the outlook. Even so, traders in New York continued betting on more easing next year, sending both the S&P 500 and Dow to new highs.

Asia tracked those gains. Tokyo, Hong Kong, Sydney, Singapore, and Seoul all advanced more than one percent. Shanghai, Wellington, Taipei, Mumbai, and Manila also posted increases. Jakarta edged down, while Bangkok was little changed despite news that Thailand’s prime minister had dissolved parliament ahead of elections early next year.

Analysts noted that while optimism around Fed policy is fuelling rallies, concerns are mounting over an AI-fuelled tech surge that has propelled companies like Nvidia — the first to surpass a $5 trillion valuation — to extraordinary heights. Some warn that the massive investment pouring into AI could prove excessive, with returns likely to take time.

Those fears intensified after Broadcom posted earnings that fell short of sky-high expectations and delivered a softer-than-hoped AI outlook, sending its shares down more than four percent in after-hours trading. A day earlier, Oracle disappointed investors by missing revenue forecasts and revealing soaring data-centre spending to support its AI expansion, prompting a nearly 11 percent drop in its stock.

Meanwhile, SoftBank shares jumped 3.9 percent after a Bloomberg report said the company is pursuing new acquisitions — including data-centre operator Switch — to strengthen its position in the AI ecosystem.

Key market figures as of 0710 GMT:

• Tokyo – Nikkei 225: +1.4% at 50,836.55 (close)
• Hong Kong – Hang Seng: +1.6% at 25,950.53
• Shanghai – Composite: +0.4% at 3,889.35 (close)
• Dollar/yen: 155.68 (from 155.58)
• Euro/dollar: $1.1737 (down from $1.1741)
• Pound/dollar: steady at $1.3394
• Euro/pound: 87.63p (from 87.65p)
• WTI crude: +0.6% at $57.94
• Brent crude: +0.5% at $61.60
• New York – Dow: +1.3% at 48,704.01 (close)
• London – FTSE 100: +0.5% at 9,703.16 (close)

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