Asian Markets Surge as South Korea Rebounds and Yen Remains Volatile

Asian markets experienced a significant rebound on Friday, with South Korea's KOSPI surging by 14% and Japan's Nikkei advancing over 3%. The MSCI's broadest index of Asia-Pacific shares outside Japan rose 5%, as Wall Street closed higher. Microsoft and Amazon's upbeat earnings reports and forecasts lifted AI-heavyweights and chip stocks broadly.

Fabien Yip, a market analyst at IG, said the turnaround was due to 'both the earnings and sentiment coming back a bit after the really overexaggerated move in the earlier part of the week.' The AI demand story didn't decelerate, it seems sustainable, easing concerns over hefty capital spending.

The yen remained volatile, holding some distance away from its 40-year trough after suspected coordinated intervention by various authorities. BOJ Governor Kazuo Ueda's press conference later in the day will be closely watched.