Asian stock markets experienced a significant downturn on Friday, with Japan’s Nikkei 225 index leading the decline amid heavy selling in technology and AI-related stocks. The Nikkei plummeted 5.8%, closing below the 63,000 threshold. Taiwan’s market also suffered a considerable loss, dropping over 5%, while Hong Kong’s Hang Seng index decreased by 2%, and China’s Shanghai Composite fell 1.6%. In Australia, the S&P/ASX 200 saw a more modest decline of 0.7%.
The pressure on technology stocks has intensified in recent weeks as investors grow concerned about rapidly rising valuations in the artificial intelligence sector. There is increasing skepticism about whether the demand for advanced chips and memory products can sustain itself if AI does not meet expectations for profits and productivity improvements.
In the United States, the Nasdaq Composite took a hit on Thursday, falling 1.5% due to significant losses among major chipmakers. Nvidia saw a 2.4% decline, and other companies like Micron Technology, SanDisk, and Western Digital also posted notable drops.
Meanwhile, oil prices climbed as tensions in the Middle East escalated, sparking worries about potential disruptions to global energy supply routes, particularly through the Strait of Hormuz. Brent crude rose by 1.1%, reaching $85.13 per barrel, while the US benchmark crude increased by 1.3% to $79.95 per barrel.