Asian Shares Mixed; Nikkei Sets New Record As Tech Stocks Surge

(RTTNews) - Asian stocks ended mixed on Friday, with Japan's Nikkei hitting a record high on the back of a weaker yen and strong gains in the tech sector while Chinese and Hong Kong markets retreated after a survey showed China's factory activity shrank for a seventh month in October.

Easing U.S.-China tensions as well as strong earnings from e-commerce giant Amazon and iPhone maker Apple helped limit regional losses, if any.

China's Shanghai Composite index fell 0.81 percent to 3,954.79 after an official survey showed a measure of China's manufacturing activity contracted more than expected to hit a six-month low of 49.0 in October, down 0.8 percentage points from the previous month.

The non-manufacturing PMI edged up to 50.1 from 50.0 in the previous month, matching expectations.

Hong Kong's Hang Seng index tumbled 1.43 percent to 25,906.65 after electric-vehicle maker BYD reported a decline in third-quarter net income and revenue, sending its shares 3.5 percent lower.

Japanese markets climbed to a record high, with exporters and tech stocks leading the surge fueled by optimism over AI's potential and hopes for aggressive fiscal stimulus under the Prime Minister Sanae Takaichi.

The Nikkei average jumped 2.12 percent to 52,411.34, while the broader Topix index settled 0.94 percent higher at 3,331.83.

Tokyo Electron advanced 3.6 percent, Advantest rallied 3.9 percent, Hitachi jumped 7.2 percent and Socionext shares surged 16.7 percent.

Seoul stocks extended gains for a third day to set a new record high due to investor optimism over U.S. tech giant Nvidia's artificial intelligence chip supplies to Korean companies.

The Kospi average closed up 0.50 percent at 4,107.50 after a choppy session. Among the top gainers, Hyundai Motor soared 9.4 percent, Naver surged 4.7 percent and Samsung Electronics advanced 3.3 percent.

Australian markets finished marginally lower as consumer discretionary stocks fell on concerns over future demand. Wesfarmers gave up 2.5 percent and JB Hi-Fi lost 3.4 percent.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index gained 0.66 percent to close at 13,548.32, marking its highest level in three weeks.

Gold prices were marginally lower in Asian trading as the dollar rose on uncertainty over further Federal Reserve rate cuts.

Oil traded lower and was on course for a third straight monthly decline on supply glut fears.

Overnight, U.S. stocks ended lower as investors showed little reaction to President Trump's announcement that he had struck a deal with Chinese President Xi Jinping to trim tariffs in exchange for renewed promises from Beijing to crack down on fentanyl exports, resume U.S. soybean purchases and keep rare earths exports flowing.

The tech-heavy Nasdaq Composite plunged 1.6 percent as shares of Meta and Microsoft fell sharply on worries over surging AI spending. The S&P 500 lost 1 percent and the narrower Dow dipped 0.2 percent.