Asian markets tech sell-off intensified on Friday, extending a global retreat driven by mounting concerns over high valuations in the technology sector and heavy spending on artificial intelligence. The losses followed a third consecutive day of declines on Wall Street, where investor confidence has been shaken by uncertainty over when large AI investments will generate returns.
The downturn spread across multiple asset classes, hitting equities, cryptocurrencies, and precious metals, as traders reduced exposure to riskier assets amid weakening economic signals from the United States.
Technology Stocks Under Pressure Globally
Technology shares have led the global sell-off as investors reassess the scale of capital being poured into artificial intelligence. During the current earnings season, major companies including Amazon and Alphabet have outlined potential AI-related spending totaling about $385 billion, raising doubts about profitability and timelines for returns.
Concerns intensified after AI startup Anthropic unveiled a tool capable of performing tasks such as legal drafting and data marketing. Analysts said the development heightened fears that AI could undermine existing software business models, particularly in the software-as-a-service sector.
Wall Street Losses Spill Into Asia
All three main US indexes closed sharply lower on Thursday, with the Nasdaq recording its worst three-day performance since the market turmoil triggered by tariff disputes last April. The sustained losses set the tone for Asian trading sessions.
In Asia, Seoul fell sharply due to its heavy technology weighting, ending the day 1.4 percent lower after earlier losses of around five percent. Hong Kong, Shanghai, Singapore, Mumbai, Taipei, and Manila also posted declines, while Tokyo bucked the trend and finished higher.
Indonesia Hit by Ratings and Index Concerns
Jakarta dropped more than two percent after Moody’s cut Indonesia’s sovereign credit outlook to negative. The ratings agency cited concerns over fiscal conditions, foreign reserves, and rising debt at state-owned companies.
The decline capped a difficult week for Indonesian stocks, which have been under pressure since MSCI raised concerns about ownership issues and delayed adding Indonesian equities to its indexes or increasing their weightings.
Weak US Data Adds to Economic Anxiety
Investor sentiment was further weakened by US data showing job openings fell to their lowest level since 2020. Companies also announced the highest number of January job cuts since the 2009 global financial crisis, adding to worries about slowing economic momentum in the world’s largest economy.
Bitcoin and Precious Metals Slide
The risk-off mood pushed bitcoin to levels not seen since October, briefly nearing $60,000 and erasing gains made after Donald Trump’s election victory. The cryptocurrency has now lost more than half its value since peaking above $126,000 last year.
Precious metals also suffered heavy selling. Silver dropped sharply to around $72 an ounce, its lowest level since December, while gold fell below $4,800, well off last week’s record highs. Analysts linked the decline to a stronger dollar and easing geopolitical tensions.
Mixed Corporate and Commodity Developments
Oil prices showed some recovery in Asian trade after earlier declines linked to easing tensions over US-Iran nuclear talks. Meanwhile, shares in Rio Tinto were mixed after the company confirmed it had abandoned merger talks with Glencore, a deal that would have created the world’s largest mining group.
In contrast, Toyota shares rose in Tokyo after the automaker raised its profit and sales forecasts and announced leadership changes aimed at speeding up decision-making.
Conclusion:
Global markets remain volatile as investors question the sustainability of high technology valuations and the pace of returns from artificial intelligence investments. With economic data pointing to slowing growth and risk appetite weakening, Asian markets are likely to remain sensitive to further developments on Wall Street and in the global tech sector.
