Asian Shares Mixed As AI Concerns Pressure Chip Stocks

(RTTNews) - Asian stocks ended mixed on Friday, with tech and semiconductor shares falling amid ongoing AI-related concerns.

There was a sell-off across the AI value chain after Google parent Alphabet burnt through cash last quarter, Amazon signaled higher capital expenditures next year atop an already huge amount in 2026, and Intel warned about a faltering PC market.

Adding to the risk-off tone, Binance, the world's largest crypto exchange, has frozen digital assets worth around $3bn (£2.24bn) as it investigates a "potential security issue."

The U.S. dollar fell along with Treasury yields in Asian trade while gold extended losses to hover around $3,980 an ounce.

Brent crude futures jumped almost 2 percent toward $113 a barrel on signs the U.S. may resume military strikes against Iran.

According to reports by the Wall Stret Journal and Axios, a senior commander had briefed President Donald Trump on potential military options for a possible resumption of major combat operations on Thursday.

China's Shanghai Composite index fell 1.44 percent to 3,599.02 as a global AI tech sell-off weighed on technology stocks.

Hong Kong's Hang Seng index surged 1.46 percent to 23,294.42, recovering losses from the previous session ahead of Global Financial Leaders Investment Summit opening next week.

Japanese markets slumped as a result of weakening AI sentiment and a stronger yen.

The Japanese currency extended gains against the dollar after the Bank of Japan kept interest rates unchanged as expected but revised up its inflation forecast and indicated it remains prepared to tighten policy further if inflation risks intensify.

The Nikkei average fell 2.12 percent to 63,290.11 while the broader Topix index dropped 0.95 percent to 3,965.07. AI spending concerns weighed on the chip sector, with Advantest, Tokyo Electron and Kioxia Holdings falling 5-7 percent.

Seoul stocks tumbled as heavyweight chipmakers fell sharply amid concerns over returns on artificial intelligence investments. The Kospi index plummeted 3.48 percent to 5,730.74. Samsung Electronics, SK Square and SK Hynix plunged 3-7 percent. Australian markets shrugged off a global tech sell-off to end slightly higher, with retail and energy stocks leading the surge ahead of next week's RBA policy meeting.

The benchmark S&P/ASX 200 edged up 0.18 percent to 8,908.10 while the broader All Ordinaries index settled 0.14 percent higher at 9,025.40.

Grocer Coles plummeted 7.7 percent after the supermarket giant said heightened promotional activity from competitors hurt early second-quarter sales. Wesfarmers rallied 3.6 percent and JB Hi Fi surged 6.2 percent.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index climbed 0.63 percent to 13,797, extending gains for a third consecutive session to reach a two-week high.

Overnight, U.S. stocks ended lower as Alphabet's revenue miss as well as negative free cash flow revived concerns about artificial trade.

A raft of mixed economic data also clouded the outlook for inflation and interest rates. Third-quarter GDP growth came in at an annualized 3.4 percent, surpassing analyst expectations and marking the fastest pace in a year.

Consumer spending rose in September as inflation stayed high at 3.6 percent on a year-on-year basis, marking the fastest pace since May.

The core PCE price index, the Fed's preferred inflation gauge, climbed 3.1 percent, matching expectations after holding at 3.0 percent for three consecutive months.

Initial jobless claims stayed near a 57-year low last week, signaling labor market resilience.

The tech-heavy Nasdaq Composite tumbled 1.4 percent as semiconductor stocks snapped their four-day winning streak. The S&P 500 and the Dow both slipped around 0.3 percent.