Asian stock markets tumbled on Friday, led by significant losses in Japan and South Korea. This selloff dragged emerging-market stocks to their steepest slump in nearly three weeks as traders sold to lock in profits from recent rallies.
The decline was driven largely by a crash in technology stocks, with SoftBank Group plunging amid mounting concerns over the rising cost of artificial intelligence infrastructure. Investors continue to wrestle with whether the current boom in AI spending is overdone or just beginning.
In South Korea, the Kospi index experienced severe volatility, with trading halted for 20 minutes to prevent panic selling. This marked the third time this week that trading was paused on the index.
While some shares had previously seen tech-driven gains, the rollercoaster ride continued into the weekend. Meanwhile, crude prices edged back down following a brief rally sparked by news of an attack on a ship in the Strait of Hormuz.