Asian Shares Fall on Renewed Tech Worries as Gold Eases from Highs

Asian stocks fell on Friday amid renewed concerns over heavy investments in artificial intelligence, while gold and silver pulled back after hitting record highs. Oil prices also eased on hopes of a de-escalation in US-Iran tensions.

Markets have experienced significant volatility this week as investors navigated a weaker dollar, renewed tariff warnings, potential US government shutdown risks, and geopolitical uncertainty.

Optimism in the tech sector around AI had supported equities earlier, boosted by strong earnings reports from companies including Meta, Samsung, and SK hynix. However, sentiment was dented on Thursday after Microsoft reported a surge in AI infrastructure spending, raising concerns about the time it might take for firms to see returns on these investments. Analysts also cautioned that tech valuations could be stretched following a long rally.

“Microsoft suffered its worst session since the COVID-era crash, falling 12 percent and accounting for over two-thirds of the S&P 500’s decline,” noted Rodrigo Catril of National Australia Bank, citing rising investment costs, slower growth in Azure cloud services, and a longer path to monetising AI.

Wall Street closed mostly lower, with the Dow being the sole gainer.

Asian markets also struggled amid speculation that US President Donald Trump may nominate former Fed governor Kevin Warsh—known for his hawkish stance on interest rates—as the next Federal Reserve Chair.

Major Asian indices in Hong Kong, Shanghai, Tokyo, Sydney, Singapore, Taipei, and Bangkok all declined, while Seoul, Manila, and Wellington posted gains. European markets were mixed, with Paris flat following slower-than-expected growth in France, London opening lower, and Frankfurt rising.

In Indonesia, Jakarta rebounded after a two-day sell-off triggered by MSCI concerns over market transparency. MSCI warned that if sufficient improvements were not made by May 2026, it could reduce Indonesia’s weighting in its Emerging Markets Indexes and potentially reclassify the country from Emerging Market to Frontier Market status.

Gold eased to around $5,150 an ounce after reaching a peak above $5,595, while silver fell to $106 from over $121. Precious metals were also pressured by a slightly stronger dollar, despite recent weakness influenced by Trump’s comments supporting a lower dollar.

Investors remain alert to developments in the Middle East after the US sent a naval presence to the region and issued warnings to Iran over nuclear negotiations. Crude contracts fell over 1 percent after spiking as much as 5 percent the previous day, reflecting ongoing fears of conflict in the oil-rich region, which could drive prices higher and increase inflationary pressures.

In Washington, the US Senate moved closer to a vote on a funding bill to prevent a government shutdown after a standoff over immigration policy. Current federal funding is set to lapse at midnight Friday.

Key figures:

• Tokyo – Nikkei 225: DOWN 0.1% at 53,322.85

• Hong Kong – Hang Seng: DOWN 2.1% at 27,387.11

• Shanghai – Composite: DOWN 1.0% at 4,117.95

• London – FTSE 100: DOWN 0.2% at 10,150.97

• WTI crude: DOWN 1.7% at $64.32 per barrel

• Brent crude: DOWN 1.6% at $68.50 per barrel

• Euro/USD: DOWN at $1.1940 from $1.1962

• Pound/USD: DOWN at $1.3781 from $1.3800

• Dollar/Yen: UP at 153.74 from 153.04

• Euro/Pound: DOWN at 86.63p from 86.67p

• New York – Dow: UP 0.1% at 49,071.56