Politics · India Bureau
Asian Markets Retreat as AI Growth Concerns Weigh on Tech Stocks
Asian equity markets turned mixed Friday as mounting concerns about artificial intelligence valuations triggered selling pressure across technology-focused indices. The weakness followed a sharp decline in US tech stocks, with major semiconductor manufacturers emerging as particular casualties.
LSN India ·
Japan's Nikkei 225 index fell 2.6 per cent to 62,960.60, reflecting broader regional risk aversion. The Bank of Japan concluded a two-day monetary policy meeting, with analysts largely expecting the central bank to hold rates steady at the 1.25 per cent level maintained since last month's increase. Currency markets showed the US dollar softening to 157.50 Japanese yen from 157.65, while the euro strengthened to USD 1.1197 from USD 1.1181.
Performance diverged sharply across the region. Australia's S&P/ASX 200 managed modest gains, rising 0.5 per cent to 8,937.60, but South Korea's benchmark Kospi suffered more substantial losses, declining 5.4 per cent to 5,618.76. Semiconductor manufacturers bore the brunt of selling, with SK Hynix and Samsung Electronics both trading lower during morning sessions.
The pullback reflects growing market volatility surrounding artificial intelligence-related investments, which have attracted significant capital in recent months. Analysts attribute the swings to reassessment of valuations in the AI sector, with particular pressure on chip manufacturers whose stocks had surged on investor enthusiasm for the technology's expansion.