Asian equities mostly moved lower on Friday, pressured by ongoing weakness in technology stocks, while Japanese markets stabilized after recent losses as investors looked ahead to a national election over the weekend.
Markets across the region followed a soft lead from Wall Street, where tech shares extended steep declines amid growing worries about disruption linked to artificial intelligence spending and adoption.
S&P 500 futures slipped 0.2% by 21:55 ET (02:55 GMT). U.S. tech sentiment was further hit after Amazon shares dropped as much as 11%, as investors reacted negatively to the company’s aggressive capital spending outlook for 2026.
Technology-heavy Asian markets posted notable losses. South Korea’s KOSPI slid 1.7%, while Hong Kong’s Hang Seng Index fell 1.3%. Singapore’s Straits Times Index declined 0.7%.
Indian markets were relatively stable, with Nifty 50 futures edging down 0.1% ahead of a Reserve Bank of India policy meeting, where interest rates are widely expected to remain unchanged. Mainland Chinese equities were largely flat, with the CSI 300 and Shanghai Composite trading in narrow ranges.
Japan stocks steady with election in focus
Japan’s Nikkei 225 and TOPIX indexes each gained around 0.7%, as attention turned to Sunday’s national election.
Pre-election polls suggest Prime Minister Sanae Takaichi’s party is heading toward a decisive victory, potentially strengthening her position in the lower house. A supermajority could give the government more freedom to push through fiscal reforms and increased public spending.
Takaichi has pledged additional fiscal support and tax relief to ease pressure from rising living costs. While equity markets have welcomed the prospect of stimulus, concerns about Japan’s already heavy debt burden recently triggered sharp selling in government bonds.
Australia stocks sink after hawkish RBA comments
Australia’s ASX 200 was the weakest performer in the region, sliding as much as 2% after Reserve Bank of Australia Governor Michele Bullock struck a hawkish tone on monetary policy.
Speaking to lawmakers on Friday, Bullock warned that strong domestic demand and tightening capacity constraints were likely to keep inflation pressures elevated. Her remarks came just days after the central bank delivered its first rate hike in two years.
Bullock emphasized the need to further cool demand to bring inflation under control, reinforcing expectations that additional rate hikes may still be on the table. Markets are now pricing in at least one more increase later this year.
