Asian markets mixed, Hong Kong leads gains

July 03, 2026 (MLN): Asia markets traded mixed on Friday as investors remained cautious over technology shares following losses on Wall Street, while expectations of potential U.S. Federal Reserve interest rate cuts continued to shape market sentiment.

Japan's benchmark Nikkei 225 gained 0.37%, while the broader Topix index advanced 0.34%. In South Korea, the Kospi climbed 0.97%, although the tech-heavy Kosdaq slipped 1.12%.

Australia's S&P/ASX 200 rose 0.42%, extending gains in the broader regional market, according to CNBC.

Chinese equities traded higher, with Hong Kong's Hang Seng Index jumping 1.72%, while mainland China's CSI 300 added 0.74%. In contrast, Taiwan's Taiex declined 0.91%, showing continued pressure on semiconductor-related stocks.

The mixed performance across Asia followed an uneven session on Wall Street, where investors rotated away from technology stocks despite growing optimism that weaker-than-expected U.S. labor market data could pave the way for Federal Reserve rate cuts.

The Dow Jones Industrial Average surged 594.83 points, or 1.14%, to finish at a record 52,900.07, after touching a fresh intraday high of 52,903.85.

Meanwhile, the S&P 500 ended little changed at 7,483.24, while the Nasdaq Composite fell 0.8% to 25,832.67, weighed down by continued weakness in semiconductor shares.

Chipmakers extended their decline for a second consecutive session.

The VanEck Semiconductor ETF (SMH) dropped 4.5%, with Teradyne plunging 13.6% and KLA falling 11.5%. Nvidia slipped 1.4%, while Micron Technology lost 5.5%, dragging the broader technology sector lower.

U.S. financial markets will remain closed on Friday in observance of the Independence Day holiday.

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