Asian trading is mixed as worries about AI-related issues grow | The Asahi Shimbun: Breaking News, Japan News and Analysis

Asian stock markets displayed a mixed performance on Friday as concerns regarding the future of artificial intelligence (AI) grew, following a significant drop in Alphabet's stock that impacted U.S. markets. The benchmark Nikkei 225 in Japan fell by 2.6%, closing at 62,960.60. Meanwhile, the Bank of Japan is wrapping up a two-day monetary policy meeting, but analysts largely anticipate that no changes will be made following the recent increase of the benchmark interest rate to 1.25% last month.

Amidst these developments, the United States has been urging Japan to consider further rate hikes due to rising concerns over the weakening yen. In currency exchange, the U.S. dollar decreased to 157.50 yen, down from 157.65 yen. The euro, on the other hand, rose slightly, trading at $1.1197, compared to $1.1181 previously.

In Australia, the S&P/ASX 200 index saw a modest increase of 0.5%, reaching 8,937.60. Conversely, South Korea's Kospi index experienced a sharp decline of 5.4%, closing at 5,618.76, with shares of major companies such as SK Hynix and Samsung Electronics falling during the morning session.

The volatility surrounding AI-related stocks has been notable, as companies involved in chip manufacturing have seen their shares rise due to heightened market interest, only to face declines driven by supply concerns and other factors. In Hong Kong, the Hang Seng index rose by 1.2% to 23,225.69, while the Shanghai Composite index fell by 0.9% to 3,618.14.

On Wall Street, the S&P 500 index recorded a loss of 0.3%, marking its first decline in four days, despite the majority of stocks within the index showing gains. The Nasdaq composite suffered a larger drop of 1.4%, while the Dow Jones Industrial Average decreased by 132 points, or 0.3%, to finish at 52,342.56.

Alphabet's stock, a key player on Wall Street due to its size and influence, experienced a dramatic fall of 12.6%—its worst single-day performance since its initial public offering over two decades ago. This decline contributed to a broader downturn, with the S&P 500 dropping 23.59 points to close at 7,720.39, and the Nasdaq composite falling by 365.13 points to end at 26,184.72.

In the bond market, the yield on the 10-year Treasury note decreased to 4.94%, down from 5.05% at the close of trading on Wednesday. This drop follows a period where yields had risen above 5.30%, reaching their highest levels since 2002 earlier this month.

In the energy sector, benchmark U.S. crude oil prices rose by 2.80% to $104.86 per barrel, while Brent crude, the international benchmark, increased by 2.54% to $117.80 per barrel.

Overall, the mixed results in Asian markets reflect the ongoing uncertainties surrounding AI developments and their implications for the broader economy, as traders navigate through volatile conditions influenced by significant stock movements and monetary policy considerations.