HONG KONG - Asian traders struggled to fight back on Friday after a tech-fuelled sell-off, taking heart from forecast-beating US growth data that reassured that the economy was still in rude health, but did not dent hopes for an interest rate cut.
The positive performance came despite more losses on Wall Street, where the so-called "Magnificent Seven" heavyweights -- which have been key to this year's markets surge -- suffered more selling as investors swapped out of them and into cheaper, small caps.
However, Taipei had a rough start as it reopened after being closed for two days by a typhoon, with chip giants including TSMC tanking as traders played catch-up with the recent rout, which was sparked by disappointing earnings from Tesla and Google-parent Alphabet.
Figures showing the US economy expanded far more than expected in the second quarter -- and much quicker than the previous three months -- provided a much-needed boost to sentiment and eased concerns that it was slowing a little too much for comfort.
The data was largely consumer-led, even while interest rates remain at two-decade highs and inflation is elevated.
However, the S&P 500 and Nasdaq both fell, with tech titans Nvidia, Microsoft, Amazon, Apple and Facebook owner Meta well in the red.
Attention now turns to personal consumption expenditure figures, which are due later in the day. The data is the Federal Reserve's preferred gauge of inflation and could give the central bank more room to cut borrowing costs.
A string of readings in recent months and dovish comments from Fed officials have seen bets on a September move soar, while some investors are also eyeing another one before January.
Asian markets opened with big gains but some tailed off as the day wore on.
Tokyo, Hong Kong, Sydney, Seoul, Manila and Jakarta rose but Shanghai, Singapore and Wellington edged down.
Taipei plunged more than three percent as traders returned from their imposed typhoon break, with chip makers leading the losses.
In currency markets the dollar bounced back against the yen, having suffered some hefty selling in the two weeks since a suspected intervention by Japanese authorities to support their unit.
The greenback fell as low as 151.94 yen Thursday but clawed all the way back to 154.32 yen following the release of the US growth data.
Dealers are also eyeing Beijing, hoping for further measures to boost China's stuttering economy after the central bank announced a surprise cut to medium-term interest rates Thursday, having lowered two other key rates three days earlier.