BANGKOK (AP) – Asian stocks fell sharply on Friday, with Tokyo’s Nikkei stock average dropping 5% as selling in computer chip makers and other AI-related stocks weighed heavily.
South Korean markets were closed on Friday, but Taiwanese stocks also fell by more than 5%.
Artificial intelligence stocks have been under pressure in recent weeks due to concerns that prices have gotten too high and that strong demand for computer memory and processors will be unsustainable if artificial intelligence ultimately fails to generate the profits and productivity it promises.
U.S. futures fell while oil prices rose as fighting intensified in the Middle East.
The Nikkei Stock Average fell 5.8% to $62,945.97, while Hong Kong’s Hang Seng Index fell 2% to $24,514.29.
The Shanghai Composite Index fell 1.6% to 3,818.59.
In Australia, the S&P/ASX 200 fell 0.7% to 8,775.70.
The S&P 500 Index fell 0.5% on Thursday, even as nearly three out of four index constituents rose after many of the country’s largest companies reported their latest quarterly profits that were better than analysts expected.
The Dow Jones Industrial Average fell 0.2%, and the Nasdaq Composite Index fell 1.5%.
Nvidia fell 2.4% and had the heaviest weight in the index. Other stocks that have benefited from strong demand for AI also fell, giving back some of their stellar gains.
Micron Technology fell 5.6%, falling below 199% year-to-date. SanDisk fell 12.6%, but was still up 494% for the year. Western Digital is down 9.2%, but is still up 171% for the year.
Oil prices are near their highest in a month on concerns that a war with Iran could disrupt tanker sailing. Strait of Hormuz Blocking the shipment of crude oil from the Persian Gulf to customers around the world.
The price of a barrel of international standard Brent crude oil rose 1.1% to $85.13 per barrel.
Benchmark US crude oil rose 1.3% to $79.95 per barrel.
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AP Business Writers Stan Choe and Matt Ott contributed.
