TOKYO – Asian stocks were mixed in early Friday trading as concerns over the outlook for artificial intelligence weighed on investor sentiment. Alphabet’s steep decline continued to pressure U.S. markets and cast a shadow over technology shares across the region.
Japan’s benchmark Nikkei 225 fell 2.6% to 62,960.60. The Bank of Japan was concluding a two-day monetary policy meeting, although most economists expected policymakers to leave rates unchanged after raising the benchmark rate to 1.25% last month.
The United States has also urged Japan to increase interest rates amid concerns over the weakening yen. In currency trading, the dollar slipped to 157.50 yen from 157.65 yen. The euro rose to $1.1197 from $1.1181.
Australia’s S&P/ASX 200 advanced 0.5% to 8,937.60. South Korea’s Kospi dropped 5.4% to 5,618.76, with shares of SK Hynix and Samsung Electronics both lower in morning trading.
Stocks tied to the booming artificial intelligence sector have remained volatile. Chipmakers and other AI-related companies have benefited from intense investor demand, but their valuations can quickly come under pressure when concerns emerge over supply, competition or the sustainability of the rally.
Hong Kong’s Hang Seng Index gained 1.2% to 23,225.69, while the Shanghai Composite declined 0.9% to 3,618.14.
On Wall Street, the S&P 500 lost 0.3%, ending a three-day winning streak even as most stocks in the index and across the broader market moved higher. The Nasdaq composite sank 1.4%, while the Dow Jones Industrial Average fell 132 points, or 0.3%.
Alphabet remains one of Wall Street’s most influential companies because of its size and market reach. Its Class A shares plunged 12.6%, marking their steepest one-day decline since the stock began trading more than two decades ago.
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The S&P 500 fell 23.59 points Thursday to 7,720.39. The Dow Jones Industrial Average shed 132.54 points to finish at 52,342.56, while the Nasdaq composite dropped 365.13 points to 26,184.72.
In the bond market, the yield on the 10-year Treasury note declined to 4.94% from 5.05% late Wednesday. The yield has generally moved lower since rising above 5.30% earlier this month, reaching its highest level since 2002.
In energy trading, the U.S. benchmark crude price climbed 2.80% to $104.86 a barrel. Brent crude, the international benchmark, rose 2.54% to $117.80 a barrel.
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AP Business Writer Stan Choe contributed to this report.
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Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
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