Asian stock markets rebounded strongly on Friday after Microsoft and Amazon reported better-than-expected earnings, reigniting confidence in artificial intelligence investments. South Korea’s Kospi posted its biggest single-day gain, while Japan’s Nikkei 225 also climbed sharply, led by a surge in technology shares across the region.
The rally was fueled by Microsoft and Amazon’s latest quarterly results, which demonstrated that heavy spending on AI infrastructure and cloud services continues to generate robust business growth. Microsoft reported strong Azure cloud revenue, and Amazon’s AWS business posted its fastest expansion in several quarters, easing concerns that AI investment momentum might be slowing.
“The previous sell-off had become exaggerated because the underlying AI demand story had not materially weakened,” said Fabien Yip, market analyst at IG.
In South Korea, Samsung Electronics and SK Hynix led the recovery after suffering heavy losses earlier in the week. Their sharp gains propelled the Kospi higher, though the index remained well below its June peak and remained on track for its weakest July since 1997.
Japan’s Nikkei 225 also advanced after the Bank of Japan kept interest rates unchanged. However, a weaker yen, elevated US bond yields, and ongoing geopolitical tensions continue to inject caution among investors.
Analysts believe the strong earnings have restored faith in AI stocks, but sustained profits and healthy demand will be needed to maintain the recovery trajectory.