Asian stock markets tumbled on Friday as traders began selling to lock in profits after recent rallies driven by artificial intelligence. This was reported by Qazaqyia.kz citing Associated Press.
South Korea's KOSPI index fell 2.7% to 2,580.41 points. Japan's Nikkei 225 dropped 1.9% to 38,200.00 points. Hong Kong's Hang Seng index declined 1.5% to 18,500.00 points. China's Shanghai Composite index slipped 0.8% to 3,200.00 points.
Traders were locking in profits after recent gains in AI-related stocks. Nvidia shares fell 3.5% after hitting a record high a week earlier. Other AI-linked stocks also declined.
Markets also focused on cautious remarks from the U.S. Federal Reserve regarding interest rates. Fed Chair Jerome Powell said inflation is still too high and the Fed is in no rush to cut rates.
Oil prices also fell. Brent crude dropped 1.2% to $85.50 per barrel. U.S. West Texas Intermediate crude declined 1.1% to $81.20.
In currency markets, the Japanese yen stabilized at 155.00 against the U.S. dollar. The South Korean won traded at 1,320.00 per dollar.
Analysts said market volatility is likely to continue as investors continue to lock in profits in the AI sector.