Asian chip stocks experienced an uptick on Friday following the announcement of a trade agreement between the U.S. and Taiwan, propelling both the island’s market and South Korea’s index to unprecedented levels. Under the agreement, Taiwanese semiconductor companies committed to invest at least $250 billion in U.S. production capacity in exchange for reduced “reciprocal” tariffs. The Taiwan Weighted Index experienced an increase of 1.94%, concluding at a historic peak of 31,408.7, thereby establishing itself as the top-performing Asian market on Friday. South Korea’s Kospi increased by 0.9% and concluded at a record high of 4,840.74, achieving its 11th consecutive day of gains, while the small-cap Kosdaq increased by 0.36%, reaching a level of 954.59.

Shares of Taiwan Semiconductor Manufacturing Co. increased by 2.96% following the company’s announcement of yet another record quarter, indicating an anticipated rise in capital expenditures in 2026 to a range of $52 billion to $56 billion. Samsung Electronics and SK Hynix, two prominent players in the semiconductor industry, experienced increases of 3.47% and 0.93%, respectively, further supporting regional market strength linked to optimism around the global chip cycle.

In other markets, Japan’s Nikkei 225 decreased by 0.32%, closing at 53,936.17, thereby extending losses from Thursday, while the broader Topix index fell by 0.28% to 3,658.68. Softbank Group, having invested in a range of chip-related stocks including the chip designer Arm, experienced a reversal of earlier gains, resulting in a decline of 1.01%. Australia’s S&P/ASX 200 experienced an increase of 0.48%, reaching 8,903.9, marking its fifth consecutive session of gains.

In the final hour of trading, Hong Kong’s Hang Seng index experienced a decline of 0.48%, whereas the mainland’s CSI 300 recorded a loss of 0.41%, concluding at 4,731.87, while state-linked semiconductor foundry firm SMIC experienced an increase of 2.39%. Overnight in the U.S., the Dow Jones Industrial Average increased by 0.60%, the S&P 500 experienced a rise of 0.26%, and the Nasdaq Composite saw an advancement of 0.25%. U.S. bank stocks also moved higher after earnings, with Goldman Sachs rising over 4% and Morgan Stanley gaining nearly 6% to new 52-week highs, supported further by robust economic data showing jobless claims at 198,000, below expectations of 215,000.