Big Tech losses on Wall Street have led to a slump in the Asian stock markets, which have declined this entire week.
Japan’s Nikkei 225 index fell more than 2 per cent early in early Friday session, trading 1.6 per cent lower at 50,064.38. Hong Kong’s Hang Seng index fell 0.9 per cent to 26,247.36, while the Shanghai Composite index was nearly unchanged, at 4,007.45.
South Korea’s Kospi shed 2.2 per cent to 3,937.22 and Taiwan’s Taiex lost 0.7 per cent.
Technology industries have helped drive markets up and down all week, but the Big Tech pack, which includes leading chipmaker Nvidia, saw a drop of almost 3.7 per cent and Microsoft, which fell 2 per cent.
Their huge values give them outsized influence over the market’s direction and analysts fear a disinterest in AI might led to market crash.
China has reported that its exports contracted 1.1 per cent in October, as shipments to the United States dropped by 25 per cent from a year earlier, reflecting the after-effects of high US tariffs.
But economists expect Chinese exports to recover after US President Donald Trump and Chinese leader Xi Jinping agreed last week to de-escalate the trade war between the two largest economies.
Also Read: Asian shares dip after Big Tech losses on Wall Street
US futures edged higher and oil prices advanced on Thursday. On Thursday, the S&P 500 fell 1.1 per cent to 6,720.32 and the Dow Jones Industrial Average declined 0.8 per cent, to 46,912.30. The Nasdaq fell 1.9 per cent to 23,053.99.
In Australia, the S&P/ASX 200 skidded 0.8 per cent to 8,761.10.
Other big stocks dragging down the market included Amazon, which slumped 2.9 per cent.
Elon Musk won a shareholder vote on Thursday that would give the Tesla CEO stock worth $1 trillion if he hits certain performance targets over the next decade. The company’s shares, already up 80 per cent in the past year, fell but then rose in after-hours trading, ending at $445.91.
Corporate earnings and forecasts remained the big focus for Wall Street on Thursday, even though there has been limited data coming in following government shutdown.
But, the latest round of results and statements from executives could help shed some light on the condition and path ahead for the US economy.
In other Wall Street news, software company Datadog jumped 23.1 per cent after its latest earnings beat analysts’ forecasts. Rockwell Automation rose 2.7 per cent after turning in results that easily beat analysts' forecasts.
While the broader stock market has had a record-setting year, it has raised worries that stocks could be overvalued. Those concerns are even more focused on big technology companies that have been leading the market higher amid the focus on artificial intelligence advancements.
Job cuts in the US surged 175 per cent in October from a year ago, according to a report released Thursday from outplacement firm Challenger, Gray & Christmas. The reasons include softer consumer and corporate spending, rising costs, and the adoption of artificial intelligence.
European markets fell Thursday after a divided Bank of England kept its main interest rate unchanged.
In other dealings early Friday, US benchmark crude oil gained 35 cents to $59.78 per barrel. Brent crude, the international standard, added 36 cents to $63.74 per barrel.
The US dollar rose to 153.35 Japanese yen from 153.06 yen late Thursday. The euro fell to $1.1534 from $1.1546.
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