Investing.com– Asian stocks fell on Friday, with artificial intelligence-related stocks leading losses after disappointing results from U.S. technology companies, while the Bank of Japan kept interest rates steady as expected.
The selloff follows a sharp decline on Wall Street, where stocks plunged after quarterly results disappointed investors and renewed questions about the profitability of AI spending.
Losses worsened during prolonged trading and published results highlighted growing investment needs and challenges in parts of their business.
fell more than 2% in Asian trading at 0605 GMT.
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5% drop, Nikkei falls on chipmaker losses
South Korea’s KOSPI fell nearly 5%, with chipmakers among the biggest drags.
That of Japan fell by 2.4%, while that of the rest of the world lost 1.3%. Chip stocks led the losses, falling 7%, falling 10% and falling almost 8%.
a major investor in AI projects, fell more than 6%.
This reaction has highlighted a shift in investor sentiment, with markets increasingly demanding proof that heavy spending on data centers, advanced processors and AI infrastructure can translate into sustainable revenue and cash flow growth.
The South Korean market has been particularly under pressure as investors have reassessed the outlook for memory chips, despite strong underlying demand from AI data centers. Samsung Electronics extended its losses following its quarterly results, while SK Hynix fell sharply after its recent rally.
Elsewhere, markets were mixed. China and the star stocks fell 0.7% each.
Hong Kong’s grew 1.5%, proving more resilient than regional tech markets.
Australia’s rose 0.2%, while Singapore’s fell 0.4%.
That of India increased by 0.5%.
The BoJ keeps its rates stable as expected
The Bank of Japan kept its benchmark interest rate unchanged at 1.25% on Friday, following its September hike, as investors awaited comments from Governor Kazuo Ueda and the central bank’s latest economic forecasts for clues on the timing of further tightening.
Markets are watching for indications that core inflation is sustainably moving closer to the BoJ’s 2% target, which could strengthen the case for another rate hike as soon as December.
Friday’s data showed that that of Tokyo pink 2.6% year after year In October, correspondence economists expectations.
THE numbers reinforced expectations that THE BOJ could resume rate increase In THE future month, even as he detained prices constant on Friday.
Investors also remained attentive to rising oil prices and geopolitical tensions, which have heightened inflation fears and complicated the outlook for global monetary policy.
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