Asian markets set for strong finish after Wall Street rebound

July 31, 2026 (MLN): Asian markets were poised for a strong finish to the week on Friday, with major regional indexes set for a higher open after Wall Street rebounded sharply on stronger-than-expected corporate earnings and renewed optimism surrounding artificial intelligence spending.

Japan’s Nikkei 225 was positioned for a significant gain, with Chicago-traded futures at 63,830 against the previous close of 61,867.43. Hong Kong’s Hang Seng Index futures stood at 26,021, compared with Thursday’s close of 25,858.88.

Australia’s S&P/ASX 200 futures were also higher at 9,010, versus the benchmark’s previous close of 8,967.7, according to CNBC.

Regional markets extended their gains during Friday’s session. South Korea’s Kospi surged more than 13%, driven by sharp advances in chipmakers SK Hynix and Samsung Electronics that triggered a trading halt.

Japan’s Nikkei 225 climbed more than 3%, while Australia’s S&P/ASX 200 advanced 0.89%.

The positive momentum followed a strong recovery on Wall Street, with Nasdaq 100 futures rising 0.5% overnight. Dow Jones Industrial Average futures gained 0.2%, while S&P 500 futures edged up 0.1%.

Amazon shares jumped more than 9% in extended trading after the e-commerce giant reported better-than-expected second-quarter revenue. Strong performance from its cloud-computing business helped reinforce investor confidence in continued artificial intelligence investment.

Apple, meanwhile, posted fiscal third-quarter revenue above market expectations, supported by a 22% increase in iPhone sales. However, weaker-than-expected services revenue weighed on the stock, sending shares down 6% in after-hours trading.

The latest gains came after a powerful rally in Thursday’s regular session, led by Microsoft. The software giant surged 16% following stronger-than-expected growth in its Azure cloud business, lifting sentiment across AI-related technology stocks. The iShares Semiconductor ETF gained more than 8%.

The rebound helped markets recover from Wednesday’s heavy sell-off, when the Dow Jones Industrial Average plunged more than 1,100 points in its steepest single-day decline since April 2025.

Selling intensified after the Federal Reserve kept interest rates unchanged, raising concerns over the central bank’s ability to contain inflation while maintaining economic growth.

U.S. Treasury yields also reflected those concerns, with the 30-year yield rising 6 basis points on Wednesday to above 5.2%, near its highest level since 2007.

Investors have been reassessing expectations for future Federal Reserve rate cuts, with tighter liquidity conditions weighing on speculative trades and momentum-driven assets.

Market leadership has also broadened beyond the largest technology companies as investors increasingly focus on corporate earnings and underlying fundamentals.

Despite heightened volatility during the week, U.S. equities remained on course for weekly gains. The Dow was up around 0.5% heading into Friday’s session, while the S&P 500 had advanced approximately 0.4% and the Nasdaq Composite was higher by about 0.6%.

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