Asian stock markets decline on Friday as a sell-off in artificial intelligence-related equities spreads and weighs on broader risk sentiment. Japan’s Nikkei 225 drops sharply, with reports citing declines of around 5–6%, as heavy selling in computer chipmakers and other AI-linked stocks pulls Tokyo lower. Hong Kong’s Hang Seng also falls, with one source placing the drop near 2%. Taiwan’s market slides by about 2–5% in reported figures, while the Shanghai Composite and Australia’s S&P/ASX 200 move lower as well.
Several outlets link the move to investor concerns about the valuation of AI stocks, arguing that elevated prices and expectations for sustained demand—particularly for memory, processors, and other hardware used for AI—may not translate into promised profits and productivity. Separately, oil prices rise as fighting in the Middle East intensifies, adding to caution about costs and the economic outlook. US futures are reported lower as investors digest a mixed session in the United States, reinforcing the downward direction for Asian trading.
