Asia rallies on chip rebound and Japan pension-flow hopes as Iran risk fades

Asian equities rallied as a rebound in AI-linked chip stocks lifted Japan and South Korea. Japan’s Nikkei rose about 2% and Topix gained nearly 0.75%, while South Korea’s Kospi jumped more than 4%, though it remained on track for a third straight weekly loss. The move was driven by a US memory-chip maker’s large capex pledge, boosting Wall Street tech sentiment and spilling over into regional markets. In Japan, bond yields eased from a three-decade high and the yen strengthened as comments from the finance minister suggested efforts to encourage GPIF and other pension funds to increase domestic holdings, potentially creating longer-term support for Japanese bonds, equities and the currency. The won was volatile after Korean officials said it was misaligned with fundamentals and that intervention room remained. Overall, risk sentiment improved despite renewed US-Iran tensions.