Asia-Pacific markets ended broadly lower on Friday as another wave of selling in technology stocks dampened investor sentiment, reversing much of the optimism seen after the previous session’s rebound. Sharp declines in Japan and South Korea led the regional losses, while Australian equities managed to finish marginally higher.
The weakness across Asian markets followed an uneven overnight session on Wall Street, where an early rally fizzled out as investors continued trimming exposure to technology shares.
Japan And South Korea Record Sharp Losses
Japan’s benchmark Nikkei 225 suffered the steepest decline among major regional indices, falling 3.91%.
South Korea’s Kospi dropped even further, tumbling 5.65% as investors continued to exit technology and growth stocks.
Elsewhere across the Asia-Pacific region:
- Hong Kong’s Hang Seng Index declined 1.87%
- China’s Shanghai Composite fell 1.41%
- Australia’s ASX 200 bucked the regional trend, edging up 0.13%
Indian equity markets remained closed on Friday on account of a public holiday.
Wall Street Rally Loses Steam
The regional selloff mirrored the cautious mood on Wall Street, where a strong start to Thursday’s trading failed to hold.
Technology stocks once again came under pressure after Apple shares plunged 6.1% following the company’s announcement of price increases for Macs, iPads and home devices.
The decline in Apple weighed heavily on the broader technology sector and dragged major U.S. indices lower.
At the close:
- Nasdaq Composite fell 0.46%, marking its fourth consecutive losing session—the longest losing streak since February.
- S&P 500 slipped 0.01%.
- Dow Jones Industrial Average outperformed its peers and ended higher.
Later in the trading day, U.S. stock futures indicated a relatively stable opening for the next session.
- Dow futures gained around 45 points.
- S&P 500 futures traded near the flatline.
- Nasdaq 100 futures also remained largely unchanged.
Oil Prices Extend Decline
Crude oil prices remained under pressure as investors monitored developments in the Middle East and assessed the possibility of easing supply concerns.
Brent crude for August delivery declined 0.56% to $74.84 per barrel, while U.S. West Texas Intermediate (WTI) crude for August delivery slipped 0.49% to $71.57 per barrel.
Market participants attributed the softer oil prices to expectations that supply disruptions linked to tensions involving Iran could continue to ease, reducing concerns over global crude availability.
Investors Remain Focused On Multiple Risks
Friday’s market action highlighted the continued volatility gripping global financial markets.
Investors are weighing several competing factors simultaneously, including:
- Ongoing corporate earnings announcements.
- Persistent weakness in technology stocks.
- Geopolitical developments, particularly in the Middle East.
- The outlook for global economic growth.
- Expectations surrounding energy supply and inflation.
The renewed selloff in technology shares reflects the fragile sentiment that has dominated markets this week, with traders remaining cautious despite intermittent rebounds.