Asian Shares Extend Losses For Second Day As Tech Selloff Continues

(RTTNews) - Asian stocks fell for a second straight session on Friday amid growing questions about sky-high artificial intelligence-driven valuations.

Additionally, Netflix forecast a second consecutive quarter of slowing sales growth and SpaceX aborted Flight 13 of its giant Starship rocket at the last minute, contributing to investor anxiety ahead of the weekend.

With the chip trade getting hit hard, traders now await earnings results from prominent U.S. tech companies, including Alphabet, Amazon, Microsoft and Meta Platforms next week for further direction.

The U.S. dollar held steady in Asian trade but was poised for a weekly decline after the release of softer U.S.CPI and PPI data.

Gold rose about half a percent to $3,997 an ounce but was on track for a significant weekly loss on oil-led inflation worries.

Dallas Fed President Lorie Logan on Thursday called for "modestly" higher interest rates to balance the Fed's dual mandate.

Arguing that inflation remains far above the Fed's 2 percent target, she warned that without policy action, inflation could become more entrenched, requiring more severe rate hikes later.

Brent crude futures traded near $85 a barrel and were on track for a 12 percent weekly gain as shipping traffic slumped through the Strait of Hormuz. The U.S. intensified strikes against Iran, hitting overnight an oil tanker near the country's main oil terminal.

China's Shanghai Composite index tumbled 3.05 percent to 3,764.15 as CXMT's $8.6 billion IPO and a pipeline of large listing raised fears of a liquidity crunch.

U.S.-China tensions also remained on investors' radar after U.S. President Donald Trump accused Beijing of exploiting U.S. election data in an extraordinary primetime speech in Washington.

Hong Kong's Hang Seng index fell 1.78 percent to 24,562.24 after an overnight sell-off in U.S. semiconductor stocks on concerns over elevated valuations in AI-related companies.

Japanese markets plummeted as investors sold off chipmakers and other AI-related shares amid worries that their prices have shot too high. The Nikkei average slumped 4.03 percent to 64,141.12 while the broader Topix index settled 2.72 percent lower at 3,919.21.

Kioxia Holdings plunged 16.1 percent while Advantest, Tokyo Electron and SoftBank lost 7-9 percent.

Markets in South Korea were closed for a holiday. Australian markets ended lower as lower gold and copper prices weighed heavily on the mining sector.

The benchmark S&P/ASX 200 dropped half a percent to 8,796.70 while the broader All Ordinaries index shed 0.64 percent to close at 8,978.80.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.59 percent to 13,694.68, snapping a four-session losing streak.

U.S. stocks ended lower overnight as investors paused after a two-day rally. High-flying chip and memory stocks declined on concerns over lofty AI valuations and rising debt as every major hyperscaler races to build AI data centers.

Fresh flare-up in hostilities between the U.S. and Iran also weighed on markets as Washington launched a sixth straight day of strikes on Iran for control of the Strait of Hormuz.

Treasury yields rebounded after data showed initial unemployment claims declined more than expected last week. Retail sales experienced a modest uptick in June, supported by consumer spending even as gasoline prices fell.

The tech-heavy Nasdaq Composite tumbled 1.5 percent while the S&P 500 dopped half a percent and the Dow eased 0.2 percent.