Asian stocks ended mostly higher in thin trade on Friday, with markets in South Korea and Taiwan closed for a holiday.

While technology stocks came under selling pressure amid renewed concerns over the artificial intelligence (AI) boom and elevated borrowing costs, a retreat in oil prices and US Treasury yields helped spur buying at lower levels.


Gold jumped nearly 1.5% towards $4,200 an ounce and the US dollar took a breather as US Treasury yields finally halted their relentless upward trajectory. The 10-year Treasury yield dropped to 5.22% after a 30-year debt auction met with solid demand.

Brent crude prices dropped 1% to trade above $103 a barrel, paring gains from the previous session as US President Donald Trump ruled out attacking Iran before the US midterm elections on November 3, adding that record volumes of crude were then passing through the Strait of Hormuz.

Trump also claimed that the two countries were holding "productive" discussions to end the war, which began in February. However, subsequent reports indicated that the US had already prepared plans for three days of targeted strikes against Iranian energy infrastructure, drone and missile stockpiles.

China's Shanghai Composite Index finished marginally higher at 3,813.79 after slipping at the open amid geopolitical tensions and renewed fears of potential US trade curbs on next-generation optical transceivers for data centres.


Hong Kong's Hang Seng Index climbed 1.79% to close at 24,211.35, snapping a two-session losing streak on improving forward earnings expectations for technology stocks.

Japanese markets recovered from an early slide to end on a flat note. The Nikkei average finished marginally lower at 69,030.92 while the broader Topix Index settled 0.33% higher at 4,104.81.

Japanese technology investment group SoftBank Group tumbled 3.9% and Japanese semiconductor maker Renesas Electronics lost 4% after the Financial Times newspaper reported that US artificial intelligence company OpenAI's annualized revenue was about $50 billion less than previously signalled, and news that US technology company Apple had reduced component orders for its iPhone 18 Pro and iPhone 18 Pro Max models by 15% because of weak demand.

The yen weakened slightly against the dollar after data showed Japan's household spending fell for a ninth consecutive month despite improving wages.


Australian markets ended notably higher, led by banks and gold stocks. The benchmark S&P/ASX 200 surged 0.64% to 8,716.60 while the broader All Ordinaries Index closed 0.62% higher at 8,877.70.

In New Zealand, the benchmark S&P/NZX-50 Index rose 0.42% to 13,749.35, reversing morning losses and extending gains from the previous session.