Asian stock markets experienced a significant downturn on Friday, primarily driven by a sharp drop in Japan’s Nikkei 225 index. This decline was largely attributed to a substantial sell-off in technology and artificial intelligence-related stocks, which unsettled investors. The Nikkei saw a 5.8% decrease, closing below the 63,000 threshold. Similarly, Taiwan’s market suffered a loss exceeding 5%, while Hong Kong’s Hang Seng index fell by 2%, and China’s Shanghai Composite dipped by 1.6%. Australia’s S&P/ASX 200 also witnessed a decline of 0.7%.
Technology stocks have come under increasing scrutiny in recent weeks, as concerns mount over the rapid escalation of valuations within the artificial intelligence sector. Investors are beginning to question whether the demand for advanced chips and memory products can sustain its strength if AI does not meet anticipated profitability and productivity improvements.
In the United States, the Nasdaq Composite recorded a 1.5% drop on Thursday, burdened by losses in key chipmakers. Notably, Nvidia saw a decline of 2.4%, while other major players like Micron Technology, SanDisk, and Western Digital also faced significant downturns.
Amidst these market fluctuations, oil prices saw an upward trend as escalating tensions in the Middle East heightened fears of potential disruptions in global energy supplies, particularly through the strategic Strait of Hormuz. Brent crude experienced a 1.1% rise, reaching $85.13 per barrel, and the US benchmark crude climbed 1.3%, settling at $79.95 per barrel.