Asia-Pacific markets traded lower on Friday, following a broad sell-off in United States semiconductor stocks after a disappointing earnings report from Broadcom reignited concerns over stretched valuations in artificial intelligence-linked equities and prompted a rotation into more defensive sectors.
By 11:40 am AEST (1:40 am GMT), Australia’s S&P/ASX 200 fell 0.8%, Japan’s Nikkei 225 dropped 1.9%, while South Korea’s KOSPI 200 declined 4.5%, reflecting broad weakness across regional risk assets.
The moves came after U.S. markets delivered a mixed session on Thursday (Friday AEST), with the Dow Jones Industrial Average rising 1.7% to a record close, the S&P 500 gaining 0.4%, and the Nasdaq Composite slipping 0.1% as investors reduced exposure to technology and semiconductor names.
Broadcom’s weaker-than-expected earnings report was the catalyst for the shift, weighing heavily on chipmakers and reinforcing concerns that the AI-driven rally in equities may be becoming more vulnerable to earnings disappointments.
Among economic releases, Japan’s household spending rose 1.6% month-on-month on a seasonally adjusted basis, compared with an estimated increase of 0.8%.
Commodity markets reflected the cautious tone. ICE Brent crude fell 2.8% to US$95.03 per barrel, while spot gold rose 0.9% to US$4,474.88 per ounce.
In China, equities also declined, with the Shanghai Composite Index falling 0.6% to 4,057.8 and the CSI 300 slipping 0.7% to 4,904.7.
Hong Kong’s Hang Seng Index dropped 1.5% to 25,253.4, while India’s BSE Sensex closed broadly unchanged at 74,360.0.
European markets, however, finished higher on Thursday. The UK’s FTSE 100 rose 0.3% to 10,360.3, Germany’s DAX added 0.6% to 24,945.0, and France’s CAC 40 climbed 1.2% to 8,244.3.
