Tech weakness follows Wall Street into Asia as investors weigh AI spending
Japan and South Korea come under pressure, while European technology shares and U.S. futures also weaken.
Technology shares remained under pressure in Asia on Friday, extending the unease about artificial-intelligence spending that weighed on Wall Street on Thursday. Reuters and the Associated Press both reported declines in Japan and South Korea, although other regional markets were mixed.
The concern is the return on the money being spent, rather than a simple verdict that demand for AI has disappeared. Reuters described investors questioning whether the scale of spending will translate into adequate shareholder returns. That is an assessment of market sentiment, not proof that the investments will fail.
In Reuters' 8:02 a.m. GMT global-market report, Nasdaq 100 futures were down 1.9%, while European stock futures were down 0.5%. Those are reported snapshots, not cash-market results or a forecast of where U.S. stocks will close. Reported by Reuters; the exact futures readings have not been independently confirmed by Ticker Den.
Europe's opening was less uniform than the technology selloff alone might suggest. Reuters reported the STOXX 600 down 0.29% at 9:29 a.m. GMT, with its technology sector down 2%. Those exact European readings are also reported by Reuters and have not been independently confirmed by Ticker Den. AP's early Asian report showed gains in Australia and Hong Kong alongside declines elsewhere. Those reports reinforce the distinction between weakness in technology and a uniform move across every market.
For context on the previous U.S. session, see Thursday's Dusk Ledger. Friday's next U.S. labor-cost release is still ahead: the Bureau of Labor Statistics schedules its third-quarter Employment Cost Index for 8:30 a.m. ET. No result is available in this early batch.
