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Asian Chip Stocks Rally as Treasury Yields Ease

Asian Chip Stocks Rally as Treasury Yields Ease.

Asian technology and semiconductor stocks rallied on Friday, following strong gains in U.S. chipmakers as lower Treasury yields and falling oil prices boosted investor appetite for growth-sensitive equities.

The regional advance came after the S&P 500 and Nasdaq posted sharp gains on Wall Street overnight. Improving sentiment was supported by a retreat in U.S. government bond yields, with the benchmark 10-year Treasury yield easing to around 4.94% after briefly climbing above the closely watched 5% level earlier in the week.

Oil prices also moved lower, reducing concerns about energy-driven inflation and pressure on corporate costs. Brent crude fell about 1% to $103.77 per barrel, providing another tailwind for technology shares across Asian markets.

South Korean semiconductor giants were among Friday's strongest performers. Samsung Electronics gained 2.8%, while memory chipmaker SK Hynix jumped 4.5% as investors returned to major technology names.

Japanese semiconductor stocks also recorded substantial gains. Chip-testing equipment maker Advantest surged 5.2%, while Tokyo Electron advanced 3.3%. Memory chip producer Kioxia Holdings climbed more than 4%, extending the broad rebound across Japan's semiconductor sector.

In Taiwan, Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, rose nearly 1%. Semiconductor and smartphone chip designer MediaTek performed even better, gaining about 3%.

Technology stocks in Hong Kong joined the regional rally, with the Hang Seng TECH Index rising 1.5%. Chinese semiconductor manufacturers were particularly strong, as Semiconductor Manufacturing International Corp. (SMIC) gained more than 3% and Hua Hong Semiconductor jumped over 4%.

The widespread gains highlight the sensitivity of Asian technology and semiconductor stocks to movements in U.S. Treasury yields. Lower bond yields can make growth-oriented equities more attractive by reducing the discount rate applied to future earnings. Meanwhile, softer crude oil prices helped ease some inflation concerns, supporting broader risk sentiment across Asian markets.

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