Asian stocks rose sharply on Friday, driven by gains in chip and artificial intelligence stocks, as investors ignored escalating tit-for-tat attacks between the United States and Iran and focused on the upcoming listing of SK Hynix on the US market.

Although the renewed attacks between the US and Iran undermined the fragile ceasefire, now in its third week, markets reacted relatively calmly to developments in the Middle East, with oil prices and their inflationary effects returning to the forefront of investors' concerns, according to Reuters.

In Japan, bonds and the yen posted notable gains after Finance Minister Satsuki Katayama said on Friday that the government is studying ways to encourage pension funds, including the Government Pension Investment Fund (GPIF), to increase their investments in local financial assets.

In energy markets, Brent crude futures are heading for a weekly gain of about 5%, the best weekly performance since early May.

However, trading at $76.73 per barrel means it has lost most of the gains recorded at the start of the conflict in late February.

Nick Tweedell, senior market strategist at ATFX Global in Sydney, said: "I am closely monitoring developments in the Middle East, and the situation does not look reassuring, but investors show a great deal of resilience in dealing with these risks, while the technology sector continues to lead markets higher."

Japan's Nikkei index rose 1.8%, while South Korea's KOSPI, which is leading the AI stock rally, jumped more than 5%. Shares of chipmakers SK Hynix and Samsung Electronics rose 3% and 6% respectively, while Taiwan markets remained closed due to a typhoon.

Thus, the broader MSCI index of Asia-Pacific shares excluding Japan rose 1.8%, while European stock futures fell 0.24%, indicating continued caution in markets.

Tweedell said: "Trading in Asia started strong, but I still believe that markets are not adequately pricing in the risk of a potential re-closure of the Strait of Hormuz in the coming days."

Investors remain focused on the AI boom, which has pushed global stocks to record levels but has also raised questions about the sustainability of this rally and high valuations.

In Thursday's session, the tech-heavy Nasdaq closed strongly higher after Micron Technology's plans to invest more than $250 billion in the US by 2035 boosted chipmaker shares, sending the Philadelphia Semiconductor Index up 3%.

Anticipation for SK Hynix's US listing

All eyes are on the listing of SK Hynix shares on the US market later on Friday, after the company set the price of American Depositary Receipts (ADRs) at $149 per share on Thursday, enabling it to raise about $26.5 billion, indicating strong demand from investors looking to invest in the AI supply chain.

This listing is expected to be the second largest share offering in the world, after SpaceX's record IPO last month; the proceeds will be used to fund new factories and purchase equipment to meet growing demand for AI chips.

Sam Konrad, manager of Asian equity income investments at Jupiter Asset Management, said the listing could result in SK Hynix's ADRs trading at a premium compared to its domestic shares, and could also contribute to a revaluation of listed South Korean stocks.

Konrad, who owns shares in both Korean companies, added: "If the revaluation of SK Hynix shares succeeds, Samsung is likely to benefit as well, especially when it announces more details regarding plans to return cash to shareholders."

SK Hynix shares listed in South Korea have more than tripled since the start of the year, recording a gain of 238%, which has pushed the Korean benchmark index to record levels and made the KOSPI the best-performing major stock market globally since the start of 2025.