Daijiworld Media Network - Tokyo

Tokyo, Oct 30: Asian markets traded mixed on Friday as growing concerns over the returns from massive artificial intelligence investments weighed on technology stocks, following a sharp fall in Alphabet shares that dragged down Wall Street.

Japan's benchmark Nikkei 225 declined 2.6 per cent to 62,960.60, while South Korea's Kospi fell 5.4 per cent to 5,618.76. Shares of major chipmakers SK Hynix and Samsung Electronics came under pressure amid the broader technology sell-off.

In contrast, Australia's S&P/ASX 200 gained 0.5 per cent to 8,937.60. Hong Kong's Hang Seng rose 1.2 per cent to 23,225.69, while the Shanghai Composite slipped 0.9 per cent to 3,618.14.

The decline in technology shares reflected growing investor concerns over whether the enormous sums being invested in artificial intelligence would generate sufficient returns. AI-related stocks, particularly semiconductor companies, have experienced volatility as enthusiasm over the technology has driven valuations higher, while concerns over chip supplies and future demand have triggered periodic sell-offs.

The Bank of Japan concluded its two-day monetary policy meeting on Friday, with the central bank holding its benchmark interest rate at 1.25 per cent. The decision followed last month's rate increase. The United States has also been pressing Japan to raise interest rates amid concerns over the weakening yen.

In currency trading, the US dollar eased to 157.50 Japanese yen from 157.65 yen, while the euro strengthened to USD 1.1197 from USD 1.1181.

On Wall Street, the S&P 500 fell 0.3 per cent on Thursday, recording its first decline in four sessions, despite gains among the majority of its constituent stocks. The Nasdaq Composite dropped 1.4 per cent, while the Dow Jones Industrial Average declined 132.54 points, or 0.3 per cent.

Alphabet's Class A shares plunged 12.6 per cent, marking their steepest single-day fall in more than 20 years. The sharp decline in the technology giant's stock weighed heavily on the broader market and renewed concerns over the financial returns from large-scale AI investments.

The S&P 500 closed 23.59 points lower at 7,720.39. The Dow Jones Industrial Average settled at 52,342.56, down 132.54 points, while the Nasdaq Composite shed 365.13 points to close at 26,184.72.

In the bond market, the yield on the 10-year US Treasury eased to 4.94 per cent from 5.05 per cent late Wednesday. The yield has generally declined since crossing 5.30 per cent earlier this month, its highest level since 2002.

Oil prices moved higher during Friday's Asian trading session. US benchmark crude gained 2.80 per cent to USD 104.86 a barrel, while Brent crude, the international benchmark, rose 2.54 per cent to USD 117.80 a barrel.