Asian stock markets fell sharply on Friday, heading for significant weekly losses as the global tech sell-off deepened. Investor sentiment weakened due to rising concerns over high valuations in technology and semiconductor sectors, while renewed U.S.-China tensions added further pressure.
Technology shares in Japan and South Korea led the downturn. Traders also focused on China’s latest trade data for October, which came in below expectations.
On Wall Street, major indexes suffered heavy losses overnight, extending the week’s risk-off mood. Futures tied to U.S. stocks were mostly flat around 03:56 GMT.
Japan and South Korea Lead Market Declines
Japan’s Nikkei 225 index dropped 2.3% on Friday, putting it on track for a nearly 5% weekly loss. The decline was driven by sharp sell-offs in major tech and chipmaking companies.
SoftBank Group (TYO:9984) shares slumped 9%, while semiconductor maker Advantest Corp (TYO:6857) fell more than 7%.
South Korea’s KOSPI index tumbled nearly 3% and was set for an over 4% weekly drop. Chip giants Samsung Electronics (KS:005930) and SK Hynix (KS:000660) both extended losses.
These moves reflected growing fears that valuations in the booming semiconductor and AI industries may be unsustainable. Investor caution also increased after several U.S. banking executives warned of a potential market correction, fueling concerns about a developing equity bubble.
Elsewhere in the region, Australia’s S&P/ASX 200 slipped 0.6%, set to decline over 1% for the week. India’s Nifty 50 dropped more than 1% at the open, while Singapore’s Straits Times Index remained largely flat.
China Trade Data Disappoints as Tech Tensions Rise
Fresh data showed that China’s exports unexpectedly fell in October, reversing the previous month’s strong gain and missing forecasts for a modest increase. Imports also weakened, shrinking the overall trade balance and signaling persistent pressure from weak domestic demand.
Markets were further rattled by escalating U.S.-China trade and tech disputes. According to The Information, Washington plans to block Nvidia (NASDAQ:NVDA) from selling downgraded AI chips to Chinese firms, a move that could tighten China’s access to cutting-edge technology.
At the same time, a Reuters report revealed Beijing’s plans to ban the use of foreign-made AI chips in state-backed data centers, part of its broader strategy to boost domestic chip production.
Despite last week’s meeting between U.S. President Donald Trump and Chinese President Xi Jinping, the latest export-control measures suggest that tensions in the tech sector remain unresolved.
China’s blue-chip CSI 300 and the Shanghai Composite each slipped 0.2%, while Hong Kong’s Hang Seng index lost 1.2%, with its TECH sub-index down more than 2%.
