Asian stock markets experienced significant losses on Friday, with Japan’s Nikkei 225 index leading the downturn due to substantial selling in technology and artificial intelligence-related shares. The Nikkei plummeted 5.8%, falling below the 63,000-point threshold. Similarly, Taiwan’s market decreased by over 5%, while Hong Kong’s Hang Seng index and China’s Shanghai Composite slipped by 2% and 1.6%, respectively. In Australia, the S&P/ASX 200 saw a decline of 0.7%.
The recent pressure on technology stocks stems from growing concerns about potentially inflated valuations within the artificial intelligence sector. Investors are increasingly skeptical about whether the demand for advanced chips and memory products will remain strong, particularly if AI does not deliver the anticipated profits and productivity improvements.
In the United States, the Nasdaq Composite recorded a 1.5% decline on Thursday, primarily due to losses among major chipmakers. Notably, Nvidia’s stock fell 2.4%, with other significant declines observed in companies such as Micron Technology, SanDisk, and Western Digital.
Meanwhile, oil prices have been on the rise amid escalating tensions in the Middle East, which have sparked fears of potential disruptions to global energy supplies via the Strait of Hormuz. Brent crude increased by 1.1%, reaching $85.13 per barrel, while US benchmark crude climbed 1.3%, hitting $79.95 per barrel.