Alphabet Stock Plunge Casts Shadow Over Asian Markets

Asian stock markets traded unevenly on Friday following a sharp decline in Alphabet shares that weighed on U.S. indices. Japan’s Nikkei 225 index dropped 2.3% in afternoon trading, closing at 63,155.94. The loss reflected broader concerns regarding the future of artificial intelligence and its impact on major technology firms.

Alphabet Class A shares fell 12.6% on Thursday, marking the worst single-day performance for the stock since it began trading more than 20 years ago. As one of the largest companies on Wall Street, Alphabet’s decline dragged down the S&P 500, which lost 0.3% to 7,720.39. The index recorded its first drop in four days despite a majority of constituent stocks rising.

The Nasdaq composite, which is heavily weighted toward technology stocks, tumbled 1.4% to 26,184.72. The Dow Jones Industrial Average dropped 132.54 points, or 0.3%, to close at 52,342.56. Investors focused on AI-related equities, which have shown high volatility recently due to shifting expectations about supply chains and chip demand.

In currency markets, the U.S. dollar strengthened slightly against the Japanese yen, rising to 157.67 yen from 157.65. The Bank of Japan concluded a two-day meeting with a decision to hold its benchmark interest rate at 1.25%. This move was widely anticipated after the central bank raised rates last month, though the United States has continued to pressure Japan to increase rates to address the weakening yen.

Other Asian benchmarks showed mixed results. Australia’s S&P/ASX 200 index climbed 0.2% to 8,908.10. In South Korea, the Kospi index fell nearly 4% to 5,701.71, driven by declines in shares of SK Hynix and Samsung Electronics. Hong Kong’s Hang Seng index gained 1.7% to 23,359.06, while Shanghai’s composite index lost 0.4% to 3,636.60.

Bond yields moved lower as investors sought safety. The yield on the 10-year Treasury note fell to 4.94% from 5.05% late Wednesday. This decline follows a period where the yield touched its highest level since 2002 after topping 5.30% earlier in the month. In commodity markets, benchmark U.S. crude oil rose 1.15% to $103.17 per barrel, while Brent crude increased 1.05% to $116.09 per barrel.

The euro exchanged at $1.1186, up from $1.1181 in prior trading. Market participants continued to monitor the interplay between interest rate decisions in Asia and the volatility seen in U.S. technology sectors. The sharp move in Alphabet shares served as a focal point for traders assessing the stability of AI-related investments.