Friday saw a significant downturn in Asian stock markets, with Japan’s Nikkei 225 index experiencing a notable decline. The index plummeted by 5.8%, closing under the 63,000 mark. This drop was primarily driven by substantial sell-offs in technology and artificial intelligence-related stocks, causing investor unease. Taiwan’s stock market also suffered, losing over 5%, while Hong Kong’s Hang Seng index fell by 2% and China’s Shanghai Composite dropped 1.6%. Australia’s S&P/ASX 200 index decreased by 0.7%.
Technology stocks have been under increasing pressure recently, as concerns grow over whether valuations in the artificial intelligence sector have surged too rapidly. Investors are scrutinizing the sustainability of demand for advanced chips and memory products, given the uncertainty about AI’s potential to deliver the anticipated profits and productivity enhancements.
In the United States, the Nasdaq Composite experienced a 1.5% decline on Thursday, heavily impacted by losses among major chipmakers. Nvidia saw a 2.4% drop, while other significant players like Micron Technology, SanDisk, and Western Digital also recorded notable declines.
On the commodity front, oil prices rose as escalating tensions in the Middle East sparked fears about possible disruptions to global energy supplies via the Strait of Hormuz. Brent crude increased by 1.1%, reaching $85.13 per barrel, while the U.S. benchmark crude rose by 1.3% to $79.95 per barrel.