- Chip selloff deepens as investors rotated out of technology shares, leading to a significant decline in chipmakers after a strong rally earlier this year.
- Asian stocks dropped sharply, with MSCI’s Asia Pacific equities gauge sliding 2.7%, marking its lowest close in two months, while Japan’s Nikkei 225 Stock Average slumped 5.2%, its worst day since March.
- Oil prices gained, with Brent crude futures up 0.1% at $84.30 a barrel, and U.S. crude advancing 0.27% to $79.16 per barrel, marking their largest gains since April.
- Stock futures slid as the Asia sell-off was poised to spread, with Nasdaq futures slumping 1.6% and S&P 500 futures falling 0.85%.
- A brutal selloff in chipmakers rippled through global markets, triggering a rout across Asia and setting up steep losses in Europe and the U.S. as investors reassessed the durability of the AI-driven rally.
- Investors fled risk across Asia, with Taiwan's stock market plunging more than 6% for its worst day since U.S. President Donald Trump's 'Liberation Day' tariffs, while China's blue-chip index fell 4%.
- European chip stocks joined the sell-off that started in Asia, with several big names in the sector moving notably lower in early trading.
Asian stocks experienced a significant downturn on Friday, with MSCI's Asia Pacific index dropping 2.7% and Japan's Nikkei 225 tumbling 5.2%, marking its worst day since March.
The selloff was primarily driven by a sharp decline in semiconductor shares, which had previously enjoyed a robust rally this year. Investors are now reassessing the sustainability of the AI-driven market surge, leading to a broader risk aversion across Asia.
Taiwan's stock market suffered the most, plunging over 6%, its worst performance since the imposition of tariffs during the Trump administration, while China's blue-chip index fell 4%.
In Hong Kong, the Hang Seng Index slid 2.5%, with tech stocks also facing significant losses.
Oil prices, however, saw an uptick, with Brent crude futures rising 0.1% to $84.30 a barrel, amid ongoing geopolitical tensions following U.S. military actions against Iran.
Market analysts suggest that the unwinding of leveraged positions by retail investors could exacerbate the decline in tech stocks, as noted by Fabien Yip from IG.
Despite the turmoil, the S&P 500 remains just 1% below its all-time high, indicating a complex market landscape where some sectors continue to thrive even as others falter.
“MSCI's Asia Pacific equities gauge slid 2.7% heading for its lowest close in two months, while Japan's Nikkei tumbled 5.2% for its worst day since March. Separately, oil prices are set for their biggest weekly gain since April, with Brent crude at $84.30 a barrel.”
CNBC
