Global shares skid as technology stocks face mounting selling pressure

Global shares tumbled after a Wall Street sell-off triggered by concerns over artificial intelligence stock valuations. Japan's Nikkei and South Korea's Kospi plunged 6 per cent, while European markets also declined amid growing uncertainty over the technology sector

Tokyo: Global shares tumbled on Friday following a broad sell-off on Wall Street in shares of companies related to artificial intelligence.

France’s CAC 40 shed 1.1 per cent in early trading to 8,117.65, while Germany’s DAX lost 1.5 per cent to 25,919.48. Britain’s FTSE 100 fell 1.4 per cent to 10,635.51. US shares were set to open mixed, with Dow futures down 0.8 per cent at 51,192.00. S&P 500 futures rose nearly 0.3 per cent to 7,402.50.

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Tokyo’s benchmark Nikkei 225 slipped 6.0 per cent to finish at 57,434.77, falling below 60,000 points for the first time in nearly half a year. Japanese technology shares were among the biggest losers, including those of SoftBank Group Corp. and Advantest Corp.

Australia’s S&P/ASX 200 lost 0.5 per cent to 9,020.80. South Korea’s Kospi dropped 6.0 per cent to 5,059.69, as shares of Samsung Electronics and SK Hynix plunged. Hong Kong’s Hang Seng fell 1.3 per cent to 24,481.86, while the Shanghai Composite dipped 1.1 per cent to 3,649.18.

Stock markets around the world have been under pressure amid continued declines in companies that benefited from the boom in the artificial intelligence industry. Critics also say AI stock prices have risen too high and are in a bubble. What might come next remains uncertain, they say.

“Of course, the sell-off in companies that have so long whetted investors’ appetite could create buying opportunities at a discount,” said Ipek Ozkardeskaya, senior analyst at Swissquote.

In Tokyo trading, Toyota Motor Corp.’s stock fell sharply after the Japanese automaker reported lacklustre profits the previous day.

Thursday was Wall Street’s worst day since US President Donald Trump shook markets worldwide in April 2025 with his “Liberation Day” tariffs. The sell-off more than erased the US stock market’s gains from the previous day, which had marked its best performance in three months. AI chip stocks are among Wall Street’s most influential stocks.

In energy trading on Friday, benchmark US crude reversed course and dipped 0.99 per cent to USD 89.62 a barrel. Brent crude, the international standard, fell 0.93 per cent to USD 97.38 a barrel. Uncertainty still reigns over developments in the war with Iran and when the global energy industry can return to normal.

In currency trading, the US dollar rose to 158.14 Japanese yen from 157.68 yen. The euro cost USD 1.1182, down from USD 1.1219.