Asian equities closed lower on Friday, with South Korea’s Kospi down 3.96% and Taiwan’s TAIEX shedding 3.19%. Japan’s Nikkei 225 dropped 1.88% while the broader Topix slipped 0.61%. The MSCI Asia Pacific Index fell 0.3%, reflecting a retreat across tech‑heavy markets.
The rout was anchored by AI stocks, which have been pressured after weaker‑than‑expected earnings from major U.S. firms. Nasdaq 100 futures fell 1.5% and the Philadelphia Semiconductor Index was down 1.4%, underscoring a sharp turn away from chip bets.
Intel Inc. (NASDAQ: INTC) shares plunged 23% after its earnings release revealed a revenue forecast that fell short of consensus estimates. The company cited weak demand for PC processors and supply‑chain disruptions as key factors, according to the filing.
Alphabet Inc. posted its largest one‑day drop after earnings missed expectations, while Amazon.com Inc. slid 7.3% in extended trading as online‑business growth slowed and advertising spend surged. Microsoft, in contrast, drew heavy demand for a $25 billion debt offering, offering a glimmer of relief in the tech space.
On the currency front, the Japanese yen weakened to 157.87 per dollar ahead of the Bank of Japan’s rate decision, while the offshore yuan remained flat at 6.6566. Oil prices rallied, with Brent crude trading at $115.44 and WTI at $102.84, as traders priced in potential U.S. military actions in the Middle East.
The AI‑driven sell‑off has pushed investors toward defensive staples and US Treasuries, with futures indicating a continued bearish bias for the U.S. equity market. Market watchers will be keen to see whether the next earnings cycle can reverse the trend or whether the valuation gap will widen further.