Asian equities traded mostly lower on Friday, led by another sharp decline in South Korea, as a renewed sell-off in U.S. technology stocks rippled through global markets and unsettled investor sentiment across the region.

South Korea’s benchmark Kospi fell as much as 5% in early trading, marking a second consecutive day of heavy losses before paring some of the decline. By late morning, the index was still down around 2%, while the tech-heavy Kosdaq slid 2.48%. The move underscored growing anxiety around the global semiconductor cycle and big-tech earnings, both of which play an outsized role in Korea’s market performance.

The selling pressure was broad-based. Samsung Electronics slipped about 1%, while memory-chip giant SK Hynix lost roughly 0.71%. Automaker Hyundai Motor dropped a steep 4.81%, reflecting concerns that weaker global demand could weigh on export-heavy manufacturers. Defense and aerospace major Hanwha Aerospace declined 4.97%, and battery maker LG Energy Solution fell 2.91%.

South Korea’s equity market is heavily concentrated in chips, autos, and advanced manufacturing, making it particularly sensitive to shifts in global technology sentiment. Over the past week, sharp swings in U.S. tech stocks have translated almost directly into volatility in Seoul, as investors reassess growth expectations and valuation levels for hardware and AI-linked names.

Japan offers brief relief as pharmaceuticals sink

Elsewhere in Asia, Japan’s markets staged a modest recovery. The Nikkei 225 reversed earlier losses to close up 0.34%, while the broader Topix gained 0.68%, helped by bargain hunting in select exporters and industrial stocks.

However, Japanese pharmaceutical companies came under pressure after U.S. President Donald Trump unveiled a new government-backed website aimed at offering discounted prescription medicines, sparking fears of tighter pricing in one of the industry’s most important markets. Sumitomo Pharma tumbled more than 5%, while Takeda Pharmaceutical, Japan’s largest drugmaker by revenue, slid 1.75%.

In Greater China, Hong Kong’s Hang Seng Index fell about 1.26%, trimming steeper losses from earlier in the session, while mainland China’s CSI 300 edged slightly lower. Australia’s S&P/ASX 200 underperformed regional peers, sliding 2.06% as weakness in mining and financial stocks compounded the global risk-off mood.

Commodities add to volatility

Commodities markets also reflected the heightened uncertainty. Spot silver rebounded 1.68% after suffering a dramatic 13% plunge the previous day, one of its sharpest single-session drops in years. The rebound offered limited comfort to investors, many of whom remain wary of sudden price swings across both metals and equities.

Wall Street tech jitters spill into Asia

The turbulence in Asia followed a rough overnight session in the United States, where technology stocks once again led the market lower.

Alphabet shares slipped about 0.5% after the Google parent reported quarterly results and revealed aggressive capital expenditure plans tied to artificial intelligence, projecting spending of roughly $185 billion for 2026. While the investment underscores Big Tech’s race to dominate AI infrastructure, it also raised concerns about near-term profitability and cash flow, prompting investors to reassess valuations across the sector.

Qualcomm suffered an even sharper sell-off, plunging more than 8% after issuing a weaker-than-expected outlook. The company cited a global memory shortage and softer demand from key customers, adding to worries that the broader semiconductor industry could face another period of uneven growth.

U.S. benchmarks closed firmly in the red. The Dow Jones Industrial Average fell 1.20%, the S&P 500 dropped 1.23%, pushing it into negative territory for the year, and the Nasdaq Composite recorded the steepest decline, sliding 1.59% as megacap tech stocks bore the brunt of selling.

Bigger picture for investors

Market participants say the current pullback reflects a mix of profit-taking after last year’s strong rally, concerns over ballooning AI-related capital spending, and lingering uncertainty about global growth. Higher-for-longer interest rate expectations and uneven demand for consumer electronics are also feeding into the cautious tone.

For Asia in particular, the pressure on South Korea highlights how tightly regional markets are tied to U.S. technology trends. With chips and advanced manufacturing at the core of many Asian economies, any wobble in Silicon Valley quickly echoes through Seoul, Tokyo, Taipei, and beyond.

As earnings season continues and more companies outline their spending plans for AI and next-generation infrastructure, investors are likely to remain sensitive to guidance on margins, demand, and supply chains. For now, the combination of U.S. tech volatility and slowing global momentum suggests Asian markets could face further choppy trading in the days ahead.

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