Shares across Asia presented a mixed picture on Friday, 16 January 2026, after Wall Street managed to halt a two-day slide and edge back towards its recent highs. The steadier mood was largely driven by a resurgence in heavyweight technology stocks, with US stock futures also ticking higher in early trading.
Tech and Trade Deals Fuel Momentum
The technology sector regained its momentum after Taiwan Semiconductor Manufacturing Co. (TSMC), a critical supplier to the global industry, reported robust profits and outlined ambitious investment plans. This news sent TSMC's shares listed in Taipei up by 2.7% early Friday, lifting Taiwan's benchmark Taiex index by 2%.
The positive signal from TSMC's Chief Financial Officer, Wendell Huang, who noted "continued strong demand," provided a significant boost to the artificial intelligence (AI) sector. This was reflected in a 2.1% rise for AI giant Nvidia, a company whose valuation has soared amid the ongoing frenzy for AI-related stocks.
Further bolstering sentiment was the recent signing of a major U.S.-Taiwan trade deal. The agreement involves $250 billion in new investments by Taiwan's semiconductor and technology firms in the United States. In exchange, the Trump administration has committed to cutting tariffs on Taiwanese goods, aiming to establish a strategic economic partnership and upgrade US industrial infrastructure.
Regional Market Performance and Economic Data
Performance across major Asian indices was varied. Japan's Nikkei 225 dipped slightly by 0.1% to 54,062.28. Hong Kong's Hang Seng index fell 0.3% to 26,851.69, and the Shanghai Composite lost 0.2%, settling at 4,103.45. Investors are keenly awaiting China's economic growth data for 2025, due for release on Monday.
In contrast, South Korea's Kospi rose 0.4% to 4,814.21, continuing to trade at record highs supported by renewed confidence in AI shares. Australia's S&P/ASX 200 also gained 0.4%, reaching 8,895.00, while India's Sensex climbed by a similar margin.
Wall Street Recovery and Economic Indicators
On Thursday, Wall Street found its footing as the artificial intelligence industry bounced back. The S&P 500 rose 0.3% to 6,944.47. The Dow Jones Industrial Average added 0.6% to 49,442.44, and the Nasdaq composite increased by 0.2% to 23,530.02.
Encouraging economic reports contributed to the positive mood. Data showed fewer US workers applied for unemployment benefits last week, suggesting a slowdown in layoffs. Additionally, manufacturing surveys from the mid-Atlantic region and New York state came in significantly stronger than economists had forecast.
This stronger-than-expected domestic data particularly benefited smaller companies, whose fortunes are often more closely tied to the US economy. The Russell 2000 index of small-cap stocks jumped 0.9%.
The earnings season also gathered pace. Investment behemoth BlackRock, which now oversees more than $14 trillion in assets, saw its shares surge 5.9% after reporting profit and revenue that exceeded analysts' expectations.
Commodities and Currency Movements
Easing oil prices helped calm investor nerves. Early Friday, the price of benchmark US crude slipped by 12 cents to $58.96 per barrel, following a 4.6% drop on Thursday. The international standard, Brent crude, fell 16 cents to $63.60.
The sharp decline came after former President Donald Trump stated he had heard "on good authority" that plans for executions in Iran had halted amid widespread protests. Financial markets interpreted his comments as a signal that geopolitical tensions affecting major oil-producing regions could ease, reducing the risk of supply disruptions.
In currency markets early Friday, the US dollar weakened slightly against the Japanese yen, falling to 158.27 yen from 158.63. The euro edged up to $1.1610 from $1.1609.
