Asian stocks showed a mixed performance, with tech shares facing further selling pressure
Asian stock markets fell on Friday as a selloff in tech stocks extended from Wall Street, as investors moved away from semiconductor and AI-related shares in search of opportunities elsewhere in the market.
South Korean stocks posted modest gains after the Bank of Korea kept interest rates unchanged, as widely anticipated, and indicated a prolonged pause on future rate changes. Regional markets had a soft start following Wall Street, where declines in banking and tech stocks pushed indexes further below record highs.
Asian stocks ease as tech shares face selling pressure
Asian stocks showed a mixed performance, with tech shares facing further selling pressure.
In the Japanese stock market, the tech-focused Nikkei fell 0.93 percent after reaching a record high in the previous session, while the broader Topix rose 0.59 percent to extend its own record high. The Nikkei came under pressure from tech losses, following declines in U.S. markets overnight.
Earlier optimism over additional fiscal spending by the Sanae Takaichi government, which had fueled a Japanese stock rally earlier this week, cooled amid doubts over how much fiscal room the government actually has. Reports that Takaichi might call a snap election as early as February had sparked expectations of increased stimulus, particularly if her ruling coalition strengthens in parliament. However, these reports also rattled Japanese bond markets, with 10-year yields surging to their highest levels this century amid concerns over stretched public finances.
Taiwan’s TAIEX dropped 0.42 percent, and Hong Kong’s Hang Seng slipped 0.52 percent, weighed down by technology stocks.
Mainland China’s blue-chip CSI 300 remained flat, while South Korea’s KOSPI gained 1.43 percent to hit a new record high. The Bank of Korea held interest rates steady on Thursday, as expected, and indicated the end of its current easing cycle.
Russell 2000 outperforms S&P 500 as tech-heavy Nasdaq slips
In the U.S. stock market, S&P 500 E-mini futures remained largely flat following a 0.5 percent decline in the cash index overnight. The tech-heavy Nasdaq Composite fell 1 percent, while the Dow Jones Industrial Average eased 0.086 percent.
The Russell 2000 gained 0.70 percent, outperforming the S&P 500, while the larger index fell 0.5 percent.
Geopolitical tensions have eased somewhat after U.S. President Donald Trump said he had been told the killing of protesters in Iran had stopped, reducing the likelihood of U.S. military action. He also calmed markets regarding the Fed, stating he has no plans to fire Chair Jerome Powell despite a criminal investigation into renovation cost overruns at Fed headquarters.
However, Trump remains firm on his pursuit of Greenland, insisting the U.S. needs it, even as the foreign ministers of Greenland and Denmark walked out of a high-stakes Washington meeting, reiterating that the autonomous Danish territory is not for sale.
In the European stock market, futures indicate that record highs set on Wednesday in Britain and across the region are likely to continue.