Asia-Pacific markets traded broadly higher Friday, reversing early losses as investors continued rotating out of technology stocks. The shift tracked similar declines in the U.S., where tech-heavy indexes have faced recent pressure.
The rotation reflects growing caution toward the sector amid valuation concerns and shifting interest rate expectations. Analysts point to a broader move toward value-oriented stocks as investors reassess growth prospects.
Market sentiment remains fragile, with early mixed trading giving way to gains in several major indices. Japan's Nikkei and South Korea's Kospi both advanced, while China's Shanghai Composite edged up in afternoon trade.
The technology sell-off has weighed on regional chipmakers and semiconductor-related stocks. However, broader market resilience suggests investors are finding opportunities in other sectors.
Some analysts warn the rotation could accelerate if U.S. tech earnings disappoint. Others see the shift as a healthy correction within a longer bull run.