Global markets fall as Nikkei enters bear market and Kospi crashes
Asian equities and US technology stocks faced intense selling pressure on Friday following a significant Wall Street selloff.
Global markets experienced heavy selling on Friday, with Asian equities extending losses after a major downturn on Wall Street. According to News18, Japan’s Nikkei 225 fell more than 6 per cent, entering bear market territory after a decline of over 20 per cent from its recent peak.
South Korea’s Kospi dropped more than 8 per cent, falling below the 5,000 mark and triggering a 20-minute trading halt via exchange circuit breakers. Australia’s S&P/ASX 200 also declined 0.9 per cent.
The selloff follows a session on Thursday where all three major US indices saw their most significant single-day declines since April 2025. During that period, tariff announcements by President Donald Trump led to a global market rout. The Nasdaq Composite fell 5.5 per cent, entering correction territory, while the S&P 500 tumbled 4.4 per cent.
Investor anxiety is linked to the sustainability of artificial intelligence (AI) investments, potential regulatory scrutiny, and high capital expenditure for AI infrastructure. The Philadelphia Semiconductor Index fell 12.2 per cent, and the Magnificent Seven technology stocks lost more than $1 trillion in market capitalisation.
Michael McCarthy, chief executive for Australia and New Zealand at Moomoo, said there was a clear shift in market sentiment. He suggested the Wall Street selloff indicated sentiment could be turning decisively negative.
Investors are now awaiting the US non-farm payrolls report for October, scheduled for release on Friday. The US economy is expected to have added 59,000 jobs, with the unemployment rate projected to remain at 4.2 per cent.
