(Sharecast News) - Asia-Pacific markets tumbled on Friday as a global sell-off in technology stocks gathered pace, driven by mounting concerns over the rising cost of artificial intelligence infrastructure.
"Markets have swung from relief to fragility in a single breath," said Patrick Munnelly, market strategy partner at TickMill.
"Tech is cracking again - Apple pricing fears, OpenAI IPO jitters and a fresh forced unwind in Korea have ripped through the rally."
Investors continued to rotate out of technology names on Thursday, pushing the Nasdaq Composite down 0.46% and leaving it with its first four-day losing streak since February.
The sell-off was particularly severe in Asia, where semiconductor and AI-linked stocks led regional declines.
Munnelly said global equities were under renewed pressure, with the MSCI All Country World Index sliding to a two-week low as technology weakness again dominated market sentiment.
"The selloff has been sharpest in Asia, where the MSCI Asia Pacific Index dropped more than 3%, led by another violent unwind in semiconductor and AI-linked names," he said.
"US futures are also lower, with Nasdaq 100 futures down around 1.3% and S&P 500 futures off roughly 0.7%, while European equity futures are pointing to a weaker open."
South Korea remained the epicentre of the volatility, Munnelly said, after the Kospi triggered its second trading halt this week.
"The speed of the move highlights how unstable positioning has become after the AI-led rally," he said.
"Leveraged retail exposure, crowded semiconductor longs and fragile sentiment around memory demand have combined to create a market that is highly vulnerable to negative headlines."
Oil prices also extended losses as investors shrugged off renewed tensions in the Persian Gulf.
A US official told MS NOW that Iran was behind an attack on a cargo ship near the coast of Oman in the Strait of Hormuz.
The ship was sailing under a Singapore flag, according to the Wall Street Journal.
United Kingdom Maritime Trade Operations said the ship reported no casualties and no environmental damage.
Brent crude futures were last down 3.69% on ICE at $72.48 a barrel, while the NYMEX quote for West Texas Intermediate dropped 3.73% to $69.24.
Tech stocks lead declines across Asia
Japan's Nikkei 225 slid 4.15% to 69,360.88, while the broader Topix fell 1.32% to 3,963.36.
SoftBank Group led losses across the region, dropping 12.53%, after chip designer Arm Holdings fell 3.2% overnight and underperformed the broader semiconductor sector.
Kioxia Holdings lost 11.24%, while Taiyo Yuden declined 10.84%.
SoftBank added to the stress in Japan, Munnelly said, with shares hit after reports that OpenAI could delay its IPO until 2027.
"The concern is not just about SoftBank's potential exit timeline; it is also about whether AI monetisation is progressing quickly enough to support the valuations and capital commitments already embedded across the ecosystem," he said.
"The market is still willing to believe in AI as a secular theme, but it is becoming less forgiving of any signs that returns may be deferred."
In China, the Shanghai Composite fell 2.26% to 4,027.26, while the Shenzhen Component dropped 3.44% to 15,782.22.
Ningbo Ronbay New Energy Tech declined 11.16%, while Shanghai Haixin Group and Shanghai Yahong Moulding each lost 10.02%.
Hong Kong's Hang Seng Index fell 1.76% to 22,671.86.
Sunny Optical Technology dropped 9.1%, SMIC lost 6.98%, and Alibaba Group declined 5.79%.
South Korea's Kospi 100 plunged 6.15% to 10,744.26, with SK Square down 9.43%, Kiwoom losing 9.19%, and SK Hynix falling 8.36%.
The South Korean exchange triggered circuit breakers for the benchmark Kospi, halting trading for about 20 minutes after the index fell more than 8%, while the small-cap Kosdaq dropped more than 5%.
Sydney, Wellington buck regional trend to close higher
Australia bucked the regional trend, with the S&P/ASX 200 rising 0.18% to 8,764.20.
Ramelius Resources gained 3.81%, Perseus Mining rose 3.62%, and Regis Resources added 3.45%.
Across the Tasman Sea, New Zealand's S&P/NZX 50 edged up 0.02% to 13,495.24.
Freightways climbed 4.28%, Serko gained 2.76%, and Vector added 2.63%.
Dollar mixed against regional peers
In currencies, the dollar was last down 0.09% on the yen to trade at JPY 161.64, as it rose 0.16% against the Aussie to AUD 1.4495, and slipped 0.11% on the Kiwi to change hands at NZD 1.7687.
Reporting by Josh White for Sharecast.com.
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