Market Overview

Asian equities rebounded on Friday, 3 July 2026, as bargain‑hunting in technology shares combined with easing geopolitical tensions and renewed hopes that a cooling U.S. labour market could keep the Federal Reserve on track to ease policy later in the year. The Dow Jones Industrial Average closed at a record high ahead of the U.S. Independence Day holiday, while Nasdaq 100 futures rose 0.7% and S&P 500 futures gained 0.3% in Asian trading.

Commodity and Geopolitical Factors

Oil prices remained subdued after U.S. President Donald Trump told CNBC that the conflict with Iran had eased and Tehran was willing to resume negotiations, a comment that helped extend the improvement in global risk sentiment. Brent crude (LCO) was up 0.42% in the session.

Equity Performance

South Korean equities led the regional rebound after a technology‑driven sell‑off pushed the KOSPI (KS11) close to technical bear‑market territory. The KOSPI climbed 2.7% on the day, leading gains across the region, though the index stayed down about 6.5% for the week. Samsung Electronics Co Ltd (KS:005930) rose 6.5% (intraday gain 8.22%) and SK Hynix Inc (KS:000660) gained 4.2% (intraday gain 10.88%); despite the rebound, Samsung remained down 10.2% and SK Hynix down 15.4% for the week.

Japan’s Nikkei 225 rose 0.7% (intraday gain 1.53%) and the TOPIX added 0.8% (intraday gain 1.24%). Singapore’s STI edged up 0.41% and was set to close the week at record levels. Australian S&P/ASX 200 jumped 1.37% (intraday gain 1.14%) after stronger‑than‑expected services activity, while Indonesia’s Jakarta Stock Exchange Composite (JKSE) advanced 2.46% and trimmed its weekly decline to about 0.4%. Hong Kong’s Hang Seng gained 1.23% (weekly advance ~3.2%).

Semiconductor Supply Chain Recovery

The recovery spread across Asia’s semiconductor supply chain. Memory‑chip maker Kioxia Holdings Corp (TYO:285A) surged 7.3% (intraday gain 9.23%), Rohm Ltd (TYO:6963) rose 7.0% (intraday gain 14.18%), and Sumitomo Chemical Co., Ltd. (TYO:4005) added 6.6% (intraday gain 6.17%).

Chinese Market

Chinese shares bounced after two consecutive sessions of losses, with the Shanghai‑Shenzhen CSI 300 rising 1.1% (intraday gain 0.62%) and the Shanghai Composite gaining 0.6% (intraday gain 0.37%). Sentiment was supported by the private Caixin/RatingDog services PMI, which remained firmly in expansion territory, reinforcing evidence that domestic demand continues to improve alongside earlier manufacturing data.

Economic Data

Australia’s composite PMI returned to expansion, Japan’s final services PMI was revised higher, and South Korea’s foreign‑exchange reserves increased in June, providing a modest signal of financial stability after the week’s market volatility.

Outlook

Investors now look ahead to Thailand’s inflation data on Monday, while Bank Negara Malaysia is widely expected to keep interest rates unchanged next week. ANZ forecasts inflation to remain broadly stable in China and Taiwan and to ease only marginally in the Philippines, offering fresh insight into the region’s policy outlook after a week dominated by global technology sentiment.

Reporting by Roushni Nair