Asia Stocks Tumble As AI Spending Concerns Deepen

Asian stocks tumbled on Friday, with artificial intelligence-related shares leading losses after disappointing results from U.S. technology companies, according to YahooStocks5. The regional selloff followed a sharp decline on Wall Street, where Alphabet shares plunged after quarterly results disappointed investors and renewed questions about the profitability of AI-related spending.

Losses deepened in extended trading after Amazon and Intel reported results that highlighted mounting investment requirements and challenges in parts of their businesses. Nasdaq 100 Futures dropped more than 2% in Asian trading by 03:16 GMT. South Korea's KOSPI slumped more than 5%, with chipmakers Samsung Electronics and SK Hynix among the biggest drags.

Chipmakers Lead Regional Losses

Japan's Nikkei 225 fell 2.8%, while the broader TOPIX lost 1.3%. Chip stocks led the downturn, with Advantest falling 7%, Lasertec Corp plunging 13%, and Kioxia Holdings dropping nearly 9%. SoftBank Group slid more than 6%.

The reaction underscored a shift in investor sentiment, with markets increasingly demanding evidence that heavy spending on data centres, advanced processors and AI infrastructure can translate into sustainable revenue growth and cash flow. Elsewhere, China's Shanghai Composite and the Shanghai Shenzhen CSI 300 fell 0.8% each, while Hong Kong's Hang Seng rose 1.5% and Australia's S&P/ASX 200 rose 0.4%.

Bank Of Japan Holds Rates

The Bank of Japan kept its policy rate unchanged at 1.25% on Friday following its September increase, as investors awaited Governor Kazuo Ueda's comments and economic forecasts for clues on the timing of further tightening. Tokyo's core consumer price index rose 2.6% year-on-year in October, matching economists' expectations.

Key facts

• Asian stocks tumbled on Friday, led by artificial intelligence-related shares.
• South Korea's KOSPI slumped more than 5%.
• Japan's Nikkei 225 fell 2.8% and Nasdaq 100 Futures dropped more than 2%.
• The Bank of Japan kept its policy rate unchanged at 1.25%.
• Tokyo's core consumer price index rose 2.6% year-on-year in October.