Asian stock markets slide as tech shares slump and South Korea halts trading

Asian stock markets fell sharply on Friday in a technology-led sell-off, with South Korea's Kospi briefly halting trading after a steep drop. The benchmark index triggered a circuit-breaker mechanism when it fell 8%, before ending the session 5.8% lower. Japan's Nikkei 225 also closed more than 4% down, while other major regional markets were also weaker.

Sponsored

The move came as investors reassessed the recent rally in technology shares and questioned whether valuations had risen too far. In South Korea, the 20-minute halt on the Kospi was the third time the circuit breaker had been triggered this week and the fifth such event this year. Shares in SoftBank fell 12.5% in Japan, adding to the pressure on regional technology stocks.

The sell-off followed a sharp fall in Apple shares on Thursday after the company said it would raise prices for its iPads and MacBooks because of higher chip costs. Apple fell 6% in US trading, its biggest one-day decline in more than a year. Microsoft also fell after it raised prices for its Xbox gaming consoles, citing higher component costs.

The moves added to concern that rising input costs could affect device sales and, in turn, demand for computer chips. The latest declines also reflect wider unease about the scale of spending on artificial intelligence infrastructure. Big technology firms have committed hundreds of billions of dollars this year to build AI systems and related capacity, but some investors are now asking whether the expected returns justify the spending.

Sponsored

That debate has become more visible as traders take profits after months of gains and rotate away from the most expensive parts of the market. The pressure on Asian markets is significant because technology shares have been a major driver of regional gains in recent months. South Korea has seen particularly volatile trading, with the Kospi circuit breaker repeatedly activated as investors react quickly to sharp moves.

Japan's SoftBank, which has large exposure to technology and AI-related investments, was among the biggest fallers in the region. What remains unclear is whether Friday's decline marks a short-term correction or the start of a broader reassessment of tech valuations. Investors will be watching whether the selling spreads further across global markets and whether more companies pass higher costs on to consumers.

The next focus will be on whether the recent pressure on AI-linked stocks eases or deepens in the coming sessions.

#Asianmarkets #Kospi #Nikkei225 #technologyshares #AIinfrastructure

Sponsored