European and Asian stock markets rose on Friday as investors tracked a record session on Wall Street in the wake of the Federal Reserve's latest interest rate cut.
The gains came despite renewed concerns about tech valuations after disappointing earnings from sector giants Oracle and Broadcom.
"The US tech sell-off was short-lived as Wall Street narrowed losses towards the end of yesterday's session, helping to lift the broader market mood", said Dan Coatsworth, head of markets at AJ Bell.
London added 0.3 per cent in late morning deals, despite official data showing that the UK economy unexpectedly contracted in October in the run-up to Britain's tax-raising budget.
Focus for global investors switches to next week's release of US jobs data, which could provide an insight into the Federal Reserve's plans for next year.
Partial data released on Thursday showed US jobless claims rose more than expected in the week ended December 6, marking their biggest increase for five and a half years and reinforcing the view of a softening labour market.
Traders welcomed Fed boss Jerome Powell's post-meeting comments on Wednesday — seen as less hawkish than feared — but the policy board's statement suggested it could hold off a fourth straight cut in January, supporting the dollar.
Stock markets in Tokyo, Hong Kong, Sydney, Singapore and Seoul climbed more than one percent on Friday, while Shanghai, Wellington, Taipei, Mumbai and Manila also ended higher.
Jakarta slipped, while Bangkok was barely moved as investors brushed off news that Thailand's prime minister had dissolved parliament, paving the way for general elections early next year.
The gains came despite worries about an AI-led tech rally that has seen many firms chalk up eye-watering gains, with chip giant Nvidia becoming the first to break a $5 trillion valuation in October.
With warnings that the hundreds of billions of dollars pumped into AI may have been overdone — and investors might have to wait some time before seeing any returns — analysts say valuations could be overstretched and a bubble forming.
Those worries were compounded on Thursday as earnings from chip titan Broadcom failed to meet investors' lofty expectations and its outlook for AI sales disappointed. Its shares fell more than four percent in after-hours trade.
The news came a day after software firm Oracle reported quarterly revenue had fallen short of forecasts and revealed a surge in spending on data centres to boost AI capacity.
Shares in Oracle ended down 10.8 per cent in New York.
In corporate news on Friday, tech investment giant SoftBank jumped 3.9 per cent, as Bloomberg reported that the firm is looking at more acquisitions including data centre operator Switch as it looks to build its influence in the AI sector.
London — FTSE 100: UP 0.3 per cent at 9,730.52 points
Paris — CAC 40: UP 0.6 per cent at 8,137.78
Frankfurt — DAX: UP 0.4 per cent at 24,382.37
Tokyo — Nikkei 225: UP 1.4 per cent at 50,836.55 (close)
Hong Kong — Hang Seng Index: UP 1.8 per cent at 25,976.79 (close)
Shanghai — Composite: UP 0.4 per cent at 3,889.35 (close)
New York — Dow: UP 1.3 per cent at 48,704.01 (close)
Dollar/yen: UP at 155.92 yen from 155.58 yen on Thursday
Euro/dollar: DOWN at $1.1728 from $1.1741 — AFP
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