Taiwan benchmark index drops more than 5% in broad decline
Asian shares fell Friday, extending a global retreat driven by renewed selling in technology and semiconductor stocks. Tokyo’s Nikkei 225 declined 5% as investors shed positions in computer chipmakers and other shares tied to artificial intelligence, according to the Associated Press. Taiwan’s benchmark index tumbled more than 5%, and South Korean markets were closed.
The declines follow another down day on Wall Street, where the S&P 500 fell 0.5% to 7,533.77 on Thursday, according to FRED data. The Nasdaq composite, heavily weighted toward technology companies, dropped 1.5% to 25,881.95, while the Dow Jones Industrial Average edged 0.2% lower to 52,552.97. Despite the index-level decline, more stocks in the S&P 500 rose than fell, a sign that the selling was concentrated in the technology and AI sectors rather than broad-based.
AI-related stocks have been under pressure for weeks, the Associated Press reported, as worries grow that prices have surged too high and that voracious demand for computer memory and processors may not be sustainable if AI ends up not producing as much profit and productivity as promised. Wall Street mostly rose after more U.S. companies reported better-than-expected earnings for the latest quarter, with the selling concentrated in the technology and AI sectors rather than broad-based.