BEIJING (dpa-AFX): Asian stocks retreated on Friday after a Wall Street rout wiped out roughly US$2.5 billion in market value and sent the Nasdaq into correction territory on Thursday.
Shares of companies exposed to artificial intelligence (AI) data centres, including crucial chipmakers and semiconductor manufacturers, came under significant selling pressure amid concerns over valuations and whether substantial AI spending can generate sufficient returns.
Rate hike worries also weighed on markets after two Federal Reserve officials supported modest and steady interest-rate increases.
The US dollar held firm against major currencies, while gold traded lower near US$4,050 an ounce as traders awaited the US October payrolls report later on Friday for more clues on a possible rate hike in December.
Brent crude futures were little changed near US$99 a barrel but were on track for a weekly loss of about 11 per cent on hopes of de-escalation in the US-Iran conflict and a possible reopening of the Strait of Hormuz.
China's Shanghai Composite index closed 1.1 per cent lower at 3,649.18 on worries about the durability of the AI boom. Hong Kong's Hang Seng index fell 1.27 per cent to 24,481.86.
Japanese markets plummeted, dragged down by technology and AI-linked stocks on concerns over tighter regulations in the United States.
The Nikkei average fell 5.96 per cent to 57,434.77, falling below the 60,000-mark for the first time since May and entering bear market territory after a more than 20 per cent fall from its June peak.
The broader Topix index settled 5.9 per cent lower at 3,707.99. Japanese chip-testing equipment maker Advantest, Japanese chip equipment maker Tokyo Electron, Japanese memory chipmaker Kioxia Holdings and Japanese technology investor SoftBank Group slumped 5-11 per cent on apprehensions over the pace of future AI infrastructure development and capital spending.
Seoul stocks nosedived to hit a nine-month low, reflecting a significant sell-off in technology and semiconductor shares.
South Korean technology company Samsung Electronics, South Korean chipmaker SK Hynix and South Korean holding company SK Square slumped 6-10 per cent on fresh uncertainty over policies on AI and data centres following a sweeping victory for the Democratic Party in the US midterm elections.
The Kospi index plunged 6.02 per cent to 5,059.69. A circuit breaker was activated by the Korea Exchange to halt trading temporarily after the index fell more than 8 per cent in early trading.
After an emergency meeting of senior officials, Finance Minister Lee Hyoung Il said the country's economic fundamentals are solid and authorities are ready to unveil more steps to ease the bourse turmoil.
Australian markets closed lower as AI regulation fears weighed on the mining and tech sectors. The benchmark S&P/ASX 200 dropped 0.49 per cent to 9,020.80, while the broader All Ordinaries index ended down 0.66 per cent at 9,144.70.
New Zealand's benchmark S&P/NZX-50 index fell 0.66 per cent to 13,998.50 after the release of weak housing data and amid US data centre woes. -- dpa-AFX
