AI Earnings Spark Rally in Asian Stock Markets

Asian stock markets rallied on Friday, highlighted by a record comeback in South Korea's Kospi and gains in Japan's Nikkei. The surge followed upbeat earnings and forecasts from AI leaders Microsoft Corp. and Amazon.com Inc., which lifted chip stocks and reversed a period of steep declines and high volatility for the Kospi.

Market movements occurred alongside significant currency instability. The Japanese yen surged 2.4% on Thursday following suspected coordinated foreign exchange interventions by authorities in Japan, South Korea, and the United States. The Federal government of the United States reportedly conducted rate checks as part of this joint effort. However, the yen weakened again on Friday after the Bank of Japan decided to maintain current interest rates.