Asian Markets Crash: South Korea’s Kospi Falls 8%, Japan’s Nikkei Drops 5%

A sharp technology selloff, rising AI costs, and profit booking pushed Asian markets into their biggest weekly decline in more than a year.

Asian markets crash dominated global headlines on Friday after heavy losses across the region. South Korea’s Kospi plunged 8.2% and triggered a trading halt. Japan’s Nikkei 225 dropped 5%, while Hong Kong’s Hang Seng lost 2.4%. China’s major indexes also closed sharply lower. The fall followed a weak session on Wall Street and rising concerns over expensive technology stocks.

Also Read:Venezuelans recount fear and chaos during the earthquake, saying they feared for their lives.

The latest Asian markets crash started after Apple warned of higher product prices. The company blamed rising memory and storage chip costs. Apple shares fell more than 6% in the United States. As a result, investors questioned whether AI companies could protect their profit margins. Consequently, technology stocks faced heavy selling across Asia.

Investors also booked profits after a strong quarterly rally. Despite Friday’s losses, the Kospi remains about 62% higher for the quarter. Meanwhile, Japan’s Nikkei has gained roughly 34% during the same period. However, analysts believe many technology shares had become too expensive. Therefore, traders reduced their exposure before the quarter ended.

Market sentiment weakened further after reports suggested OpenAI could delay its public listing until next year. Nasdaq futures also declined during Asian trading. At the same time, Brent crude slipped below $74 per barrel. Additionally, the Japanese yen stayed near a 40-year low, increasing speculation about possible government intervention.

The Asian markets crash highlights growing concerns about AI valuations and rising semiconductor costs. Analysts do not see this as the end of the AI boom. Instead, they view it as a healthy market correction after rapid gains. Investors will now watch company earnings and economic data closely before making fresh investment decisions.

Also Read: UN Pauses Hormuz Evacuation Mission Following Vessel Attack