Berliner Boersenzeitung - Asian markets advance as Alibaba fuels Hong Kong tech rally

The gains put the region on course to end a positive week on a strong note and came as traders weigh the economic outlook in light of Donald Trump's tariffs drive and geopolitical machinations.

The yen pulled back a day after rallying past the 150-per-dollar mark following a warning on rising bond yields by Japan's finance minister saw a rethink over bets on how many interest rate hikes the central bank will announce this year.

Traders have been dealing with a series of Trump headlines this week that have made them consider their investment strategies, with his mulling of more tariffs adding to inflation worries.

Minutes from the Federal Reserve's January policy meeting, released this week, showed officials concerned that the president's trade wars and pledges to cut taxes, regulations and immigration will force them to pause their rate cutting for now.

The first high-level discussions between Washington and Moscow since Russia invaded Ukraine -- without the presence of Europe or Kyiv -- saw the two appoint teams to negotiate an end to the war.

Disappointing earnings from retail titan Walmart sparked worries about US consumer activity and the impact on the world's top economy, and weighed on Wall Street with all three main indexes ending in negative territory.

But Asia fared, with Hong Kong piling on more than three percent to hit a three-year high.

The rally was fuelled by tech firms, and particularly Alibaba, which rocketed 14 percent a day after it released forecast-busting earnings figures. The firm is up around 65 percent since the turn of the year, and the Hang Seng Index more than 16 percent.

The Hang Seng tech index surged more than five percent, with other household names making big moves higher.

Tencent added five percent, Meituan and XD Inc jumped more than three percent, and JD.com gained almost three percent.

China's tech sector has been on a roll this year, and has been given an extra boost since startup DeepSeek unveiled a chatbot that upended the global AI sector.

Elsewhere in Asia, Tokyo, Shanghai, Singapore, Seoul, Taipei, Manila, Bangkok and Jakarta also rose.

The yen retreated after Japanese Finance Minister Katsunobu Kato said Friday that rising government bond yields -- which are at their highest since 1999 -- could weigh on economic growth.

The yen was back above 150 to the dollar, having strengthened to below that figure for the first time since December.

That dented expectations the Bank of Japan will announce a series of rate hikes this year, even after data Friday showed Japanese core inflation hit a 19-month high of 3.2 percent in January.

"Kato's remarks had traders rethinking whether the BoJ would really push ahead aggressively or if they might be nudged into a more measured, summer one-and-done approach in 2025," said SPI Asset Management's Stephen Innes.

"Most economists expect the next BoJ rate hike to land in the summer, but the market isn't entirely convinced.

"Stronger-than-expected fourth-quarter GDP growth figures, notably hawkish remarks from BoJ board member Hajime Takata, and a hotter CPI have amplified speculation that the tightening cycle could move faster than anticipated."

Rania Gule, a senior market analyst at XS.com, added: "Kato's remarks brought things back into focus, confirming that the central bank is not completely independent from the Ministry of Finance, which is grappling with unprecedented levels of debt to GDP."

- Key figures around 0700 GMT -

Tokyo - Nikkei 225: UP 0.3 percent at 38,776.94 (close)

Hong Kong - Hang Seng Index: UP 3.4 percent at 23,349.33

Shanghai - Composite: UP 0.9 percent at 3,379.11 (close)

Euro/dollar: DOWN at $1.0489 from $1.0505 on Thursday

Pound/dollar: DOWN at $1.2662 from $1.2668

Dollar/yen: UP at 150.50 from 149.65 yen

Euro/pound: DOWN at 82.84 pence from 82.90 pence

West Texas Intermediate: DOWN 0.3 percent at $72.28 per barrel

Brent North Sea Crude: DOWN 0.3 percent at $76.29 per barrel

New York - Dow: DOWN 1.0 percent at 44,176.65 (close)

London - FTSE 100: DOWN 0.6 percent at 8,662.97 (close)

(F.Schuster--BBZ)