Asian stock markets fell on Friday, tracking losses in the U.S. as investor anxiety over artificial intelligence (AI) disruptions intensified. The S&P 500 had already fallen for a third consecutive day, driven by fears that AI tools could automate critical business tasks and pressure profit margins. Traders across Asia were bracing for similar ripple effects, though Taiwan’s markets remained closed for the Lunar New Year holiday.
In the U.S., certain sectors such as trucking, logistics, and commercial real estate bore the brunt of AI fears. Shares of companies like Palantir Technologies and Autodesk slipped, reflecting broader worries that AI could upend established business models. Real estate and financial stocks extended losses, highlighting investor concern over industries vulnerable to technological disruption.
Asian technology stocks also came under pressure. In Japan, IT firms such as Trend Micro and NS Solutions fell 5.61% and 2.4%, respectively, while Indian tech giants Tata Consultancy Services and Infosys lost 1.82% and 1.48%. China’s major tech players, including Alibaba, Baidu, and Meituan, dropped between 2% and 3%, signaling widespread unease over AI’s impact on established businesses.
Despite the general market downturn, some AI-focused companies surged on investor enthusiasm. Hong Kong-listed Zhipu AI jumped 16%, building on a near-30% rally the previous day, while Beijing Haizhi Technology Group shares skyrocketed over 260% following a $97 million IPO. MiniMax also gained more than 11%, highlighting that the AI sector remains a high-interest but volatile area for investors.
Overall, Asia’s major indices closed lower, with Japan’s Nikkei 225 down 1.21% and South Korea’s Kospi retreating 0.28%. Australia’s S&P/ASX 200 fell 1.39%, driven by losses in healthcare stocks. Analysts say continued volatility is expected as markets digest AI developments and watch for further spillovers from Wall Street.
source: cnbc