By Rosemary
Global financial markets moved mostly lower on Friday as weakness in U.S. technology stocks continued to ripple across Asia and into futures trading, unsettling investor sentiment and dragging down risk assets from equities to cryptocurrencies.
U.S. stock futures pointed to a soft open, extending losses from Wall Street’s latest sell-off. The pressure has been most acute in technology shares, where growing concerns over heavy spending on artificial intelligence and slowing returns have weighed on valuations. Asian markets broadly followed that trend, though pockets of resilience emerged in Japan.
In Tokyo, the Nikkei 225 advanced 0.8% to 54,253.68, rebounding from declines earlier in the week. Gains were led by technology-related companies, with SoftBank Group rising 2.2% and chip equipment maker Tokyo Electron climbing 2.6%. Investor attention in Japan is also turning to domestic politics, as the country prepares for a general election on Sunday. Prime Minister Sanae Takaichi is seeking a stronger mandate to advance her policy agenda, adding another layer of focus for markets.
Shares of Toyota Motor rose 2% after the automaker announced a leadership transition. The company said Chief Executive Officer Koji Sato will step down in April, with Chief Financial Officer Kenta Kon set to take over the top role, a move closely watched by investors given the company’s global influence.
Elsewhere in Asia, markets struggled to find footing. South Korea’s Kospi fell 1.4% to 5,089.14, weighed down by losses in technology shares. Samsung Electronics slipped 0.4%, while memory chipmaker SK Hynix also declined 0.4%. In Hong Kong, the Hang Seng Index dropped 1.4% to 26,519.60, reflecting broader regional caution. Mainland Chinese stocks were slightly lower, with the Shanghai Composite Index edging down 0.3% to 4,065.58.
Australian equities posted steeper losses, with the S&P/ASX 200 sliding 2% to 8,708.80. Taiwan’s Taiex was little changed, while India’s Sensex traded 0.1% lower, signaling a more muted response among South Asian markets.
Cryptocurrencies were also under heavy pressure. Bitcoin, the world’s largest digital asset, continued its retreat amid fading enthusiasm and broader risk aversion. It was trading about 8% lower early Friday at just under $65,000, after briefly plunging more than 12% on Thursday to below $64,000. That marks a dramatic pullback from its record high above $124,000 reached in October, effectively erasing gains accumulated since U.S. President Donald Trump won a second term in the White House.
On Wall Street, futures for the S&P 500 slipped 0.2%, while Dow Jones Industrial Average futures fell 0.1%. The declines follow a sharp sell-off on Thursday, when the S&P 500 dropped 1.2% to 6,798.40, marking its sixth loss in seven sessions. The Dow fell 1.2% to 48,908.72, and the Nasdaq composite sank 1.6% to 22,540.59.
Technology stocks bore the brunt of the selling as investors questioned whether massive investments in artificial intelligence will deliver sufficient returns. Qualcomm shares plunged 8.5% despite reporting better-than-expected quarterly revenue, underscoring the market’s sensitivity to future outlooks rather than near-term performance. Alphabet slipped 0.5% as attention remained fixed on its heavy spending commitments tied to AI development.
Amazon added to the sector’s woes, tumbling 11% in after-hours trading after announcing plans to boost capital expenditures by more than 50% to roughly $200 billion, largely focused on artificial intelligence and related infrastructure. The move heightened concerns that soaring costs could pressure margins across the technology sector.
Adding to investor unease, new artificial intelligence tools unveiled by U.S. startup Anthropic have fueled fears of disruption across the software industry. The growing sophistication of such tools has raised questions about the long-term viability of traditional software development services and products, accelerating a sell-off in software stocks this week.
Commodity markets were mixed amid heightened volatility. Gold and silver prices have swung sharply following a months-long rally driven by demand for safe-haven assets amid geopolitical tensions. Gold fell 0.6% on Friday to $4,858.60 per ounce, retreating further after nearing $5,600 last week. Silver prices dropped 5.5% to $72.52 per ounce, extending losses after a sharp pullback late last week that erased more than 31% of its value.
Oil prices edged higher in early trading. U.S. benchmark crude rose 35 cents to $63.64 a barrel, while Brent crude, the international standard, gained 36 cents to $67.91 a barrel.
In currency markets, the U.S. dollar weakened slightly against the Japanese yen, slipping to 156.74 yen from 157.03. The euro strengthened modestly, trading at $1.1789, up from $1.1777.
As markets head into the weekend, investors remain focused on the trajectory of technology stocks, the sustainability of AI-driven spending, and broader signals from global economic and political developments that continue to shape risk appetite worldwide.
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