According to Bloomberg, the shares of TSMC and Samsung Electronics, Asia's largest chip manufacturers, climbed as the slowing US inflation data triggered the market to bet that the Fed's interest rate hike would slow down.

TSMC surged 8.5%, the largest increase since July 2020, while Samsung rose 4.6%. The Bloomberg Asia Pacific Semiconductor Index rose 7.6%, the largest increase since March 2020, after the US industry benchmark Philadelphia Semiconductor Index rose 10% overnight.

Friday's gains continued the rebound of the sector this month, but the Bloomberg Asia Chip Index still fell 37% as of 2022. Semiconductor stocks and the broader technology sector have been hit hard this year by concerns about interest rate hikes, global economic recession and valuation.

Diana Wu, senior manager of Capital Securities, said that the rebound may not last because investors may seek profit taking after the rebound. "As for the long term, I believe that the global economy will slow down, because the high level of inflation will harm growth. In addition, the Sino US trade war has increased manufacturing costs and reduced supply chain premiums."

TSMC's report on Thursday also boosted its sales in October by 56% year on year, indicating that the world's largest contract chipmaker is continuing to experience the test of slowing electronic demand. However, even the bad news seems irrelevant, because chip tool maker Tokyo Electronics Co., Ltd.'s share price rose nearly 10% after cutting its full year outlook.

Amir Anvarzadeh of Asymmetric Advisors said that the rise of the stock price of Tokyo Electron after its performance "explained everything". "It is time to put the bottom-up approach aside. Factors and momentum will be the key for the rest of this year."