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Asian stock markets bounced back strongly on Friday after Microsoft and Amazon posted better-than-expected earnings. Strong cloud growth renewed confidence in AI spending and lifted technology shares across South Korea, Japan, and Taiwan.
The Kospi recorded its biggest one-day gain, while the Nikkei 225 also climbed sharply as investors returned to AI-related stocks.
The rally started after Microsoft and Amazon showed that heavy spending on AI and data centers continues to deliver strong business growth.
Microsoft reported strong Azure growth, while Amazon's AWS business posted its fastest expansion in several quarters. Their results eased worries that AI investments were slowing.
"The previous sell-off had become exaggerated because the underlying AI demand story had not materially weakened," said IG market analyst Fabien Yip.
Samsung Electronics and SK Hynix led South Korea's recovery after suffering heavy losses earlier this week. Their sharp gains pushed the Kospi higher, although the index remained far below its June peak and stayed on track for its weakest July since 1997.
Japan's Nikkei 225 also moved higher after the Bank of Japan kept interest rates unchanged. Even so, a weaker yen, high US bond yields, and geopolitical tensions continued to create uncertainty for investors.
Analysts believe strong earnings have restored confidence in AI stocks, although the market still needs steady profits and healthy demand to keep the recovery moving.
Also Read: South Korean Chip Stocks Surge on Renewed AI Optimism
