Asian stocks advanced in early trading on Friday following strength on Wall Street overnight, although a fresh decline in Oracle's share price sent jitters through the tech sector.

In Hong Kong, the benchmark Hang Seng Index rose 230 points, or 0.9 percent, to 25,761.

On the mainland, the benchmark Shanghai Composite Index was down almost four points, or 0.1 percent, at 3,869 while the Shenzhen Component Index was up just over 27 points, or 0.21 percent, at 13,174.

Financial markets had to move fast to find their footing this week when the US Federal Reserve cut interest rates but gave a less hawkish outlook than expected, and the return of AI bubble worries added to the stress for investors.

The MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.7 percent, tracking mostly higher US markets on Thursday – the Dow and Russell 2000 indices hit new highs but the Nasdaq fell.

Tokyo's Nikkei 225 outperformed the region in morning trade, climbing 1 percent as shares in Softbank Group surged 6 percent after Bloomberg News reported it is considering acquiring the US data centre company Switch Inc.

S&P 500 e-mini futures were unchanged and Nasdaq future were down 0.2 percent as markets were on edge after Oracle shares plunged 13 percent, sparking a tech selloff, as the company's massive spending and weak forecasts fanned doubts over how quickly the big bets on AI will pay off.

"Oracle announced disappointing earnings alongside further investment in data centres, triggering fresh concerns about AI-related spending, with investors questioning whether the high level of investment will ultimately deliver the required returns," analysts from Westpac wrote in a research note.

Tech stocks received some support after Broadcom projected first-quarter revenue above Wall Street estimates on Thursday. But gains were tempered after the company said margins would fall due to a higher mix of AI revenue, dragging its shares down 5 percent in extended trading.

Overnight, the US dollar was further undermined after jobless claims data showed the number of Americans filing new applications for unemployment benefits increased by the most in nearly four-and-a-half years last week. The data are often volatile around this time of year, and the four-week average of claims suggested labour market conditions remained stable. (Reuters/Xinhua)