Asian stock markets moved in different directions Friday as concerns about the future of artificial intelligence followed a steep selloff in Alphabet shares in the United States. Japan and South Korea recorded losses, while markets in Hong Kong and Australia gained. The mixed session came after major Wall Street indexes finished lower Thursday despite advances in most U.S. stocks.
Japan's Nikkei 225 was down 2.3% at 63,155.94 in afternoon trading. The Bank of Japan concluded its two-day monetary policy meeting by leaving its benchmark interest rate at 1.25%. The decision had been widely anticipated after the central bank increased the rate the previous month.
The United States has been urging Japan to lift interest rates amid concerns over the yen's weakness. In currency markets, the dollar edged higher to 157.67 yen from 157.65 yen. The euro also strengthened slightly against the U.S. currency, rising to $1.1186 from $1.1181.
South Korea's Kospi dropped nearly 4% to 5,701.71, with both SK Hynix and Samsung Electronics shares declining. Stocks linked to enthusiasm for AI have been prone to sharp swings. Interest in the technology can push up chipmakers and other related shares, while concerns about matters such as supplies can subsequently drive them lower.
Elsewhere in the region, Australia's S&P/ASX 200 gained 0.2% to 8,908.10. Hong Kong's Hang Seng climbed 1.7% to 23,359.06, but mainland Chinese shares moved lower, with the Shanghai Composite losing 0.4% to finish at 3,636.60.
Alphabet's Class A shares plunged 12.6% Thursday, marking their biggest one-day decline since they started trading more than two decades ago. The company's size makes it one of Wall Street's most influential stocks. Its fall weighed on the broader market even as a large majority of shares in the S&P 500 and across Wall Street advanced.
The S&P 500 ended a three-day winning streak, falling 23.59 points, or 0.3%, to 7,720.39. The Dow Jones Industrial Average declined 132.54 points, also 0.3%, to 52,342.56. The technology-heavy Nasdaq composite posted a larger percentage loss, dropping 1.4%, or 365.13 points, to 26,184.72.
In the bond market, the 10-year Treasury yield slipped to 4.94% from 5.05% late Wednesday. Yields have generally retreated since exceeding 5.30% earlier in October, when they reached their highest level since 2002. Oil prices rose, with benchmark U.S. crude gaining 1.15% to $103.17 a barrel and international benchmark Brent increasing 1.05% to $116.09.
